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Report: Brazilian Court Fines Mastermind of South African Bitcoin Ponzi Scheme

Report: Brazilian Court Fines Mastermind of South African Bitcoin Ponzi Scheme

A court in Brazil has found Johann Steynberg, the mastermind of the bitcoin ponzi scheme Mirror Trading International (MTI), guilty in a case in which he is accused of using a forged identity document. The court, however, commuted Steynberg’s three-and-a-half-year sentence to a fine of just over $31,000. Both Steynberg’s lawyers and the prosecution team have reportedly appealed the court’s decision.

MTI Boss Avoids Jail Time

A Brazilian court has reportedly found Johann Steynberg, the CEO of Mirror Trading International (MTI) — the defunct bitcoin ponzi scheme — guilty in a case in which he is accused of using forged identity documents. However, according to a Mybroadband report, Steynberg, who was sentenced to three and a half years in prison, is unlikely to serve the jail time after the court reportedly ordered him to pay a fine instead.

As previously reported by Bitcoin.com News, Steynberg, who fled South Africa in late 2020, was arrested by Brazilian law enforcement in December 2021. At the time of his arrest, Steynberg was found to be in possession of a forged Brazilian identity document. Following his arrest, South African authorities reportedly kickstarted the process to have the MTI boss extradited.

Steynberg’s subsequent attempt to block the extradition proceedings was rebuffed by a Brazilian judge in 2022. Since then, the MTI mastermind has seemingly remained in “precautionary detention.”

Steynberg Appeals Against ‘Harsh’ Sentence

On why the Brazilian court commuted Steynberg’s jail sentence to a total fine of just over $31,100, the report cited the South American country’s penal code which states that jail terms of four years or lower for non-violent crimes can be converted to fines.

Meanwhile, the report said Steynberg’s lawyers have signaled their intention to appeal the court’s decision. The lawyers have said Steynberg’s alleged offense warrants a less harsh sentence than the three and a half years handed down by the court. The prosecution team, which is also appealing the court’s verdict, suggested that the punishment given to Steynberg is not commensurate with the offense.

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from Bitcoin News https://ift.tt/04QlVcB
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