KEY POINTS

  • MTI denies it is doing a multi-level marketing scam
  • MTI says it will press charges against the hackers and any publicaton reporting the story
  • MTI was also being investigated by South Africa’s Financial Sector Conduct Authority

A new report accusing Mirror Trading International of scam has been denied by  the company, calling it baseless and was intended to slander MTI without providing decent and informed proof.

Anonymous ZA, a South African group, published new information that allegedly supports claims that MTI is running a multi-level marketing scam hiding in the guise of a Bitcoin investment company. 

MTI was also investigated by South Africa’s Financial Sector Conduct Authority (FSCA), who believed the company should have a Financial Services Provider License. The regulator also said MTI’s returns on investment claims appear unrealistic and has advised investors to withdraw their funds as soon as they can. 

While Anonymous ZA maintained that the information they obtained was not from a hack, MTI called it a breach. In a response, Cheri Marks, an MTI founding member and a spokesperson for the company said those responsible for the breach committed a criminal offense and proceeded to threaten legal action against them, as well as to outlets publishing the information that was, in the view of MTI, obtained illegally.

"Yes, we had a security breach of our administration portal. Yes it was a criminal act. Yes we will be pressing charges and everyone publishing the personal information illegally obtained we will refer to our legal council," Marks said.

Anonymous ZA claims the information they got was not from a hack or through any illegal means because they only used simple scraping techniques on MTI’s website. The data shows the "deposits made by founder members are not easily traceable yet they (founders) seemingly get better ROI than regular members," said Anonymous ZA, Bitcoin.com reports. 

The group also noted that the database showed $8,171.6 BTC worth $86.25 million of payouts were given to normal members while 2,0365 BTC worth $21.4 million went out as bonuses for referring new members. 

Finally, 1,744 BTC worth $18.45 million went to the founding members as payouts. “Unless MTI can display or prove control of a Bitcoin wallet, or another storage facility to the value of 17k BTC, it will stand by its view that: MTI is a Ponzi scheme,” the group said.

In response, Marks said claims that MTI had already stopped trading is not true because last August, it was able to transact withdrawals worth 5,933 bitcoins. She also challenged everyone to name any investor who is disgruntled with their company. Additionally, she said MTI having founding members is nothing new and the fact they have extra profit is not news to anyone.

Finally Marks said MTI’s CEO has opened the company’s live trading account for the FSCA to see.

Bitcoin Turns 10 This picture shows a visual representation of the cryptocurrency bitcoin at the 'Bitcoin Change' shop in Tel Aviv, Israel, Feb. 6, 2018. Photo: JACK GUEZ/AFP/Getty Images