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Mirror Trading International (MTI) issued a ‘critical statement’ on Tuesday saying its missing CEO Johann Steynberg is alive and probably in Brazil, but that “management and leaders don’t know if our bitcoin is safe.”
This statement comes just a day after Ulrich Roux & Associates stepped down as legal representatives of the company, citing Steynberg’s disappearance and the fact that MTI members are not receiving their withdrawals as they have in the past.
The law firm confirmed that MTI management “has no way to contact Steynberg.”
MTI is reported to have 280,000 members worldwide and is claimed to generate returns of up to 10% per month using a computer-based trading algorithm. The Financial Sector Conduct Authority (FSCA) has warned people to stay away from the company and these claims of high returns.
The statement released by MTI says the last time management heard from Steynberg was on December 15. The same statement quotes Steynberg’s wife, Nerina, as saying that she will return to SA on December 22, although MTI management is not aware of this.
The following excerpt is taken from the MTI statement:
- Johann has not been honest with management, leaders or members.
- We, as managers and leaders, do not know if our bitcoin is safe.
- Management has contacted the server team; they are fully cooperating.
- Management has been in contact with the broker, Trade300, but now believes that this company is potentially owned and operated by Johann Steynberg. Communication with the runner has been scarce and not very communicative.
- The entire management team is cooperating with law enforcement and will continue to do so until this matter is resolved.
- Nerina Steynberg (Johann’s wife) has yet to file a missing persons report.
The MTI statement goes on to say that things began to unravel rapidly after the FSCA raid and seizure in October, when the offices and homes of MTI executives were raided and several phones and electronic devices were seized.
Read: MTI Plans Counterclaim After FSCA Raid on Executive Homes and Offices (Oct 28)
This generated additional work, requiring the employment of 22 more technicians by the MTI.
“The system kept crashing and Johann told us that we had had numerous hacking attempts by a Russian union. He sent us the details of these, some demanding extremely high ransoms.
‘Accounts may be compromised’
“On the day of the raid, an independent MTI contractor, a crypto expert, was contacted and asked to contact Camila (the senior account manager) at Trade300 [MTI’s unregulated broker] and tell you that our accounts may be compromised as a result of the raid and that you should wait to hear from Johann before allowing any access to the MTI broker account, which the contractor did immediately.
“The contractor had Trade300’s contact details as we had asked him to help Johann cryptographically demonstrate MTI’s bitcoin balance to the FSCA and the public. However, Johann did not provide the details necessary to complete this process. “
Following the seizure of personal and business devices by the FSCA, Steynberg informed management that a security protocol was in place with the broker to prevent the theft of bitcoins from members. This included putting a limitation on withdrawals.
Administration’s own Bitcoin to be used
A week after the raid, Steynberg apparently asked fellow MTI executive Clynton Marks to send him 400 of his own bitcoin (worth around R137.8 million), which would supposedly be matched by Steynberg’s 400. , so that late withdrawal requests could be processed.
“Management has no proof that Johann contributed the amount he declared. Clynton Marks had every confidence that he would get his bitcoin back, ”according to the MTI statement.
On Monday, November 30, Steynberg received an anonymous warning of an impending raid by the FSCA and decided that he needed to “protect himself.”
On December 2, the management team learned that Johann was heading to the airport and received an assurance that everything would be fine and that he needed to take steps so that if something happened to him, his wife Nerina could run the business. It apparently flew via Doha to São Paulo in Brazil.
Operations management
“During the weeks between December 3 and December 14, Johann and Nerina continued to manage and lead MTI’s technical department despite the challenges we faced: slow withdrawals, server-side withdrawal reporting issues, a server that needed updates and better protection, ”says MTI.
On December 12, Clynton Marks became concerned about the lack of contact with Steynberg when he was unable to log into the company’s computer system as expected.
The next day, MTI management told Johann that they were refusing to work with him any longer unless he appointed a suitable second in charge who could handle things in his absence. Steynberg wanted his wife to be that person, but eventually agreed to the appointment of an outside contractor.
Subsequently, Marks was sent an email with instructions on how to run the company.
The MTI server team, unaware of the change in corporate reporting arrangements, was hesitant to accept requests from anyone other than Steynberg, as they had been expressly instructed to only deal with him.
Then management drew attention that no server update had been done, as Steynberg had previously indicated.
Bitcoin required to fulfill withdrawals that will not be made
“As of the writing date of this statement, the bitcoin requested to fulfill withdrawals has not been paid from Trade300 and there is no valid reason for this.
“Over 34 emails have been sent to Trade300 in the last 6 days to resolve this issue,” the MTI statement said.
“Nerina [Steynberg] She told us not to tell the members about Johann’s disappearance and that she was sure he would show up. “
Nerina was instructed to open the missing person’s case but did not do so, according to the statement.
On December 16, MTI paid a private investigator to find Johann. “Nerina was not happy with that. The investigator interviewed Nerina, she refused to be recorded and was not communicated with information.
“The MTI Nedbank account, to which only Nerina and Johann have full access, has been suspended,” according to the statement.
“Our head of corporate services couldn’t access the account and the logins were changed.
“Nerina informed us only today [the statement is dated Tuesday, December 22] that Johann had booked a return flight and that his return date was 22North Dakota December 2020.
“This was a first for us; not once in the last week or after his departure was this communicated to us. We are convinced that she has control over her funds and the management team and leaders were promised that she could lead MTI in Johann’s absence. “
Is the FSCA theory correct?
FSCA chief compliance officer Brandon Topham says he is aware of the MTI management statement, and appears to confirm the FSCA theory that Steynberg was operating the company’s engine without allowing his lieutenants to enter his inner workings.
There are still confusing messages about MTI and the security of the 17,000 bitcoins (worth about R5.6 billion) that are reported to be under their control.
A Telegram message sent to Moneyweb says that the administration now has control over the server and that the trading platform confirmed the balance, but members will have to wait until Monday to confirm that the bitcoin is safe.
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