Masterminds of one of South Africa’s biggest bitcoin Ponzi schemes, Mirror Trading International (MTI), have been asked by the scheme’s liquidators to pay back over $291 million to cover the scam operation’s debts.
Liquidators’ Influence
Mirror Trading International, South Africa’s Ponzi scheme for bitcoin Ponzi, has issued summonses to 18 individuals. The liquidators want the named individuals to pay back more than $291 million (4,666,077,528 rand) to cover the scheme’s debts, a report has said.
Just a few months ago, liquidators tried unsuccessfully to declare the bitcoin trading site an illegal business in South Africa. The MTI masterminds were summoned. A report from Bitcoin.com News states that the MTI investor lawyers filed a series of late court filings, which led to the failure of the liquidators to get their online bitcoin trading platform declared illegal.
Investors were reportedly worried that the liquidators’ motion would give the latter excessive powers which may jeopardize their chances of recovering their funds. After investors intervened, the South African judge postponed hearing until a later time.
Masterminds Aware of MTI’s Insolvency
Mybroadband reports that liquidators asked the Pretoria High Court for a declaration of liability against MTI masterminds under the Companies Act. The liquidators claimed that the summoned individuals, including Johann Steynberg, and Clynton Marks who co-owned MTI were well aware of the insolvency of the bitcoin trading platform.
“[The defendants] were at all relevant times aware of the fact that MTI was trading in insolvent circumstances as well as of the actions perpetrated and constituting fraud upon MTI’s creditors,” the liquidators reportedly said in their summons.
Consequently, the liquidators assert that all the summonsed individuals must be held to account for their part in perpetuating MTI’s fraudulent business. MTI was named the largest crypto fraud in 2020. It collapsed shortly after Johann Steynberg, its CEO disappeared along with investors funds in late 2020. Brazilian authorities later detained him in 2021.
Following the online trading platform’s collapse, court-appointed liquidators have waged an ongoing battle against a group of investors opposed to the liquidation process. MTI International believes that MTI is solvent and should continue to be liquidated. The court must stop the process.
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