While the repressive approach of the US regulators SEC and CFTC on the cryptocurrency market continues, a US court sentenced a cryptocurrency platform accused by the CFTC.
The court ordered Cornelius Johannes Steynberg, the head of Bitcoin (BTC) pool operator Mirror Trading International (MTI), which the CFTC accused of fraud, to pay $3.4 billion in damages and fines.
The court ordered Steynberg to pay a $1.7 billion fine and $1.7 billion in damages to all people he defrauded, including US citizens.
In addition to the fine and compensation order, the court also permanently banned MTI founder Steynberg from registering with the CFTC and trading in any CFTC-regulated market.
In a statement, the CFTC said:
"Today, U.S. District Court for the Western District of Texas, Judge Lee Yeakel ordered that Cornelius Johannes Steynberg pay a fine of $1.7 billion and compensation of $1.7 billion to all persons whom he defrauded, including U.S. citizens.
This decision also became the largest fraud judgment involving Bitcoin ever charged in any CFTC lawsuit.
In addition, the court permanently prohibited Steynberg from registering with the CFTC and trading in any CFTC-regulated market."
In June 2022, the CFTC sued and accused MTI chairman Cornelius Johannes Steynberg of fraud by managing an unlicensed commodity pool and accepting 29,421 BTC from 23,000 US citizens.
The sentence was handed down by Judge Lee Yeakel of the US District Court for the Western District of Texas.
Finally, the CFTC also stated that Steynberg has been detained in Brazil since December 2021 on an Interpol arrest warrant.
