The infamous Mirror Trading International (MTI) scam bitcoins that were seized by liquidators have been dumped in the South African crypto market resulting in an arbitrage gap.
As a result, bitcoin has been selling at below international market rates owing to this huge over-supply of bitcoins within South Africa.
This move follows the Cape High Court in South Africa ruling that saw 4 liquidators appointed to track assets and liabilities of the now defunct MTI and try and recover an estimated 23, 000 bitcoins from the scheme.
According to recent reports, the bitcoins have been on sale for the last 2 weeks resulting in bitcoin being cheaper to buy on local South African exchanges.
Speaking to GlobalCrypto TV about this, Farzam Ehsani, CEO, VALR, one of the largest South African crypto exchange, said:
“At VALR we keep a very close eye on the Bitcoin arbitrage, as we offer this service to our customers and noticed that during the liquidations the arb actually went negative. We saw a lot of selling activity on some local exchanges and could see there were big sellers in the market.
In the last few days VALR Arbitrage customers have been seeing returns of 3-5%, indicating that there has been strong demand for Bitcoin in the market.”
– CEO, VALR
The South African crypto market is known for having noticeable arbitrage gaps brought on by the country’s exchange capital control regulations which limit the supply of crypto.
RECOMMENDED READING: South’s Africa’s Leading Crypto Exchange, VALR, Launches an Arbitrage Trading Desk
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