Court directs MTI to return more than $291M from Crypto Ponzi Scheme In SA Mirror Trading International (MTI), the South African bitcoin Ponzi scheme’s liquidators, have delivered summonses to eighteen people suspected of being the scheme’s masterminds.
According to a report, the liquidators want the named parties to repay over $291 million (4,666,077,528 rand) to satisfy the scheme’s debts. After liquidators failed to obtain a South African court’s declaration of the virtual bitcoin trading system illegal, liquidators now intend to summon the MTI masterminds. According to a news report, the MTI investor effort was thwarted by a series of late filings from attorneys. Investors were concerned that the liquidators’ move would give them too much power, jeopardizing their prospects of getting their money back. Following the investors’ intervention, a South African judge postponed the hearing until a later date. Meanwhile, according to a report by Mybroadband, the trustees have petitioned the Pretoria High Court to hold MTI’s masterminds accountable under the Companies Act. According to the liquidators, they claimed that summoned persons including Johann Steynberg and Clynton Marks, co-owners of MTI, were aware that the platform for trading bitcoins was unstable. The liquidators allegedly stated in their summons that “[the defendants] were at all crucial times conscious of the fact that MTI was trading insolvently as well as of the activities perpetrated and constituted fraud upon MTI’s creditors.” As a result, the liquidators argue that all of the summoned persons should be held accountable for their roles in MTI’s fraudulent company. The organization was called the biggest crypto fraud of 2020. Its CEO Johann Steynberg went missing with investor funds in late 2020. Brazilian authorities apprehended him in the latter part of 2021. Court-appointed liquidators are fighting investors opposed to the liquidation process after the collapse and demise of the online trading platform. The company asks for a halt to the proceedings, claiming that it is still solvent and therefore should not be liquidated.