Mirror Trading International (MTI) says it is preparing a countersuit after a raid at several locations on Monday by the Financial Sector Conduct Authority (FSCA).
The FSCA arrived with search and seizure warrants at MTI’s offices in Stellenbosch and Polokwane, as well as the Durban homes of two MTI executives. The warrants were issued in terms of the Financial Sector Regulation Act.
Responding to the raids, MTI’s marketing head Cheri Marks says the company’s lawyers are preparing to approach the courts to have the warrants set aside, and to claim damages from the FSCA.
She claims FSCA divisional executive for investigations and enforcement Brandon Topham is on a personal vendetta against MTI something Topham denies.
“We are fully compliant with all laws,” says Marks.
“In August this year, our senior executives had a meeting with the FSCA at their offices where they requested certain documents, which we provided. Also at that meeting, we demonstrated our live trades and provided proof of our bitcoin balance.
“We are 100% convinced this was a fishing expedition and that the application brought by the FSCA was illegal in the application, the merit and the execution.”
Topham issued a statement to Moneyweb
MTI’s switch to bitcoin
MTI says it ceased forex trading several months ago to ensure it remained compliant with local regulations, and switched to bitcoin trading, using an automated trading algorithm. It is now using an offshore unregulated broker to prevent its trading activities from being shut down and its accounts frozen says Marks.
In August, the FSCA announced it was investigating MTI and recommended that clients ask for their funds to be returned.
Marks earlier told Moneyweb that it has 170 000 members worldwide, with roughly 17 000 bitcoin that it trades on their behalf.
That’s worth more than R4 billion at current bitcoin prices.
