Hawks investigating reported death of MTI founder Johann Steynberg

With conspiracy theories swirling, the Hawks are investigating the reported death of Johann Steynberg (pictured), MTI’s founder and chief executive.

Last week, a Brazilian online publication called O Popular reported that Steynberg passed away on 22 April after suffering a severe heart attack. At the time, Steynberg was living under house arrest on a farm in Pirenópolis in the state of Goiás, awaiting extradition. He was arrested in December 2021, a year after fleeing South Africa, amid the collapse of the MTI crypto scam. The National Prosecuting Authority (NPA) submitted an extradition request for Steynberg in April 2022.

According to O Popular, Steynberg’s mental health took a turn for the worse, prompting his lawyer, Thales Jayme, to accompany him to a medical appointment on 15 April, where he was diagnosed with severe anxiety. One week later, reports indicate he suffered a fatal heart attack.

Behind MLM, a multi-level marketing review site, last week posted Steynberg’s purported death certificate sourced from the “Mirror Trading International Scam – Now What!?” FaceBook group.

The cause of death on the purported death certificate is: “Acute respiratory failure with sudden death, pulmonary infarctions, bilateral massive pulmonary thromboembolism, bilateral intracardiac thrombosis, hypertrophic dilated heart disease, chronic smoking.”

Behind MLM also published a “burial guide” document dated 23 April and issued by the Brazilian government. The guide states that Steynberg will be buried at the Jardim das Palmeiras Cemetery in Goiânia. No specific date of the burial is provided.

Following the news of Steynberg’s alleged demise, News24 reported that the Hawks are seeking to verify the reports surrounding Steynberg’s death.

Brigadier Nomthandazo Mbambo stated that the unit is in the process of confirming and validating the news regarding the 40-year-old’s passing.

According to LegalBrief, a daily news alert, NPA spokesperson Eric Ntabazalila said they are seeking confirmation of Steynberg’s death before considering dropping criminal charges against him. However, he stated that the ongoing criminal investigations regarding the scheme will go ahead regardless.

Operating as an internet-based cryptocurrency club, MTI pooled cryptocurrency investments from members and engaged in speculative trading. It has been alleged that Steynberg and MTI engaged in fraudulent Bitcoin schemes from May 2018 to March 2021.

MTI crumbled in December 2020, freezing member payments. The entity’s liquidation ensued as investors failed to retrieve funds, with joint liquidators appointed.

Read: Global recognition for MTI joint liquidators’ statutory powers grows

Shortly after the scheme’s collapse, Steynberg fled to Brazil, abandoning his South African wife, Nerina. In mid-2022 he was arrested in Brazil on charges of using a fake identity document. A Brazilian judge found him guilty of the charges and sentenced him to a fine.

Moneyweb reported that, according to court documents, MTI amassed 29 421 Bitcoin (equivalent to approximately R36.4 billion at today’s rate of about R1.24 million) from hundreds of thousands of investors globally.

According to a Moneyweb report, Steynberg managed 77 separate accounts within MTI and was believed to have knowledge of the missing Bitcoin. Court documents suggest he unlawfully obtained more than 28 Bitcoin after the company’s liquidation, in addition to Bitcoin acquired “without value” before this.

Steynberg’s Brazilian wife, Karine Amelya dos Santos, allegedly stated that he had no assets to list and was not aware of any will. According to documents obtained by MyBroadband, she said they lived together in a stable relationship and had a daughter.

A circulation sent to creditors by the joint liquidators on 26 January noted that claims received, printed, and registered up to 19 January totalled 8 550.

Concerns have been raised that Steynberg’s death might impede the recovery of the missing Bitcoin.