According to the Bitcoin scheme Texas State Security Board (TSSB), there is a multilevel marketing scheme – Mirror Trading – this week that promised Bitcoin profits to gullible members. In it, they also revealed the Texas commissioner had suppressed this program. It is known that the SSR is accused of over 170 countries and 76,000 members.
Mirror Trading is the entity was an elaborate pyramid scheme based in South Africa with investors all across the globe.
Bitcoin scheme Mirror Trading has finally been suppressed
Like other pyramid schemes, the Mirror Trading has promised to pay 20% of its monthly profits for Bitcoin prepayments. Mirror Trading has acted as a pyramid scheme to pay out the highest levels of Google to new entrants.
According to information from CryptoSlate, Cornelius Johannes “Johan” Steynberg recruited members under the guise of investment activity focused on Bitcoin and forex trading.
A snapshot of the TSSB order
Steynberg claims to use the exclusive AI-bot to make a quick profit on the Bitcoin market.
Steynberg stated:
“I use a proprietary AI-bot to make quick profits in Bitcoin and forex markets. Salesmen were asked to pool investor funds to increase the total assets under management while getting a chunk of money per new investor.”
In return, these new participants are required to act as salespeople, keeping the show revolving. Since March 2020, this program has attracted 22,000 members. This can be attributed to increased economic fears and the attractiveness of money quickly.
Commissioner Travis Illes in a statement stated:
“These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors. Investors were often promised safe, lucrative returns.”
The four main multilevel marketers are ForexAndBitcoin.com, Michael Cullison, Steve Herceg, and Brian Knott. The TSSB accused them of inducing illegal Texans by violating state laws requiring securities registration and securities sellers.
Cullison was a debtor in four bankruptcy cases, and Knott filed for bankruptcy twice. Herceg is also accused of filing for bankruptcy protection.
Joe Rotunda, executive director of TSSB, stated:
“Fraudulent multilevel marketing get-rich-quick schemes gain momentum and spread like wildfire through the internet. We brought this action to stop the illegal scheme before it irreparably harms Texans quickly.”
The Texas crackdown is the second Bitcoin pyramid scheme to appear in new government radars. In June, the Philippines SEC warned investors against the Ethereum dApp Forsage, calling it a pyramid model.
Read more:
- A 35-Year-Old Romanian Programmer Of The Bitclub Network Pleaded Guilty To His Role In Establishing The Ponzi Scheme
- Crypto Watchdog Whale Alert: Bitcoin Scammers Made $24 Million In Bitcoin In The First Half Of 2020