A Brazilian court has given the organizer of the crypto pyramid scheme Mirror Trading International (MTI) a monetary fine instead of the three and a half years in prison he was expecting.
The court found Johann Steynberg guilty of using forged identity documents. Although Steinberg was sentenced to three and a half years in prison, he will not serve any jail time.
The court cited Brazil’s penal code, under which a prison sentence of up to four years for non-violent offenses can be commuted to a fine.
MTI’s founder fled South Africa in late 2020 and was detained by Brazilian law enforcement in January 2021. Steinberg was found to have a fake ID at the time of his arrest.
Following his arrest, South African authorities demanded the extradition of the crypto pyramid founder to South Africa.
However, a Brazilian court rejected the demand in 2022 and Steinberg remained in pre-trial detention.
The prosecutor’s office believes the court greatly reduced Steinberg’s sentence – the punishment imposed was disproportionate to the offense committed.
Therefore, the prosecutor’s office intends to appeal the court’s decision. Cryptocurrency pyramid scheme Mirror Trading International was uncovered by South African regulators in early 2021.
The creators of the scheme managed to collect 23,000 BTC worth over $700 million from participants.
Last May, liquidators demanded that organizers Mirror Trading International cover investors’ losses by paying them $291 million.