Liquidators of Mirror Trading International (MTI) ponzi scheme have summoned everyone they could locate who withdrew money from the scheme within six months prior to December 20, 2020, the date the original liquidation application was filed.
The summons require former members to return all the bitcoin they withdrew from the scheme or to repay the current Rand value of the cryptocurrency.
For some of the scam’s victims, this development is a devastating blow. For instance, if they purchased 0.01 bitcoin for R1,670 ($90.72) on July 1, 2020, they would now have to reimburse the liquidators over R12,000 ($651.85).
When questioned about why they were reclaiming all withdrawals instead of just the profits (the difference between someone’s withdrawals and deposits), the liquidators explained that this approach was to ensure fairness for all victims.
“The effect of Section 29 of the Insolvency Act is often viewed by innocent investors as extremely harsh and unreasonable,” said Herman Bester, one of MTI’s liquidators.
According to Bester, the legislation was crafted to strike a balance between the interests of creditors who did not make any withdrawals and lost everything, and those who withdrew some or all of their funds from the scheme prior to its collapse.
The liquidators are not just after South African members; they have also lodged approximately 200 complaints in the United States against net winners.
In Australia, 5,250 people believed to have profited from the scam are being targeted, while the liquidator is said to have authority to go after members in Belgium, Canada and the UK too.
Among those who are being pursued are the collaborators and associates of Johann Steynberg, the deceased former CEO of Mirror Trading International.
Steynberg reportedly passed away in April 2024 while under house arrest in Brazil, but key figures involved in his pyramid scheme are still at large.
South Africa 🇿🇦 Crypto Fugitive Behind the MTI Crypto Scam Feared Dead, Buried in Brazil 🇧🇷
Steynberg fled South Africa for Brazil in late 2020 after the collapse of the online trading platform, Mirror Trading International (MTI), which he founded.
The scheme, which was… pic.twitter.com/O31DuBPYOt
— BitKE (@BitcoinKE) May 1, 2024
Additionally, the South Africa National Prosecuting Authority (NPA) says that it is investigating the individuals with possible charges including fraud or theft, forgery, contraventions of the Prevention of Organized Crime Act, and contraventions of the Financial Advisory and Intermediary Services Act.
Members bought into MTI with a minimum of $100 worth of bitcoin, or a minimum of $200 if they wanted to qualify for bonuses under the company’s multi-level marketing system.
South African Court Moves to Liquidate MTI Scam Scheme of Allegedly Over 23,000 Bitcoins: https://t.co/bEH2ftla3z
— BitKE (@BitcoinKE) January 18, 2021
The scheme, which was declared to be by far the biggest scam in 2020 globally, is thought to have received between 29,421 to 46,000 bitcoins and is the biggest pyramid or Ponzi-like scheme in South Africa’s history to date.
South Africa’s Mirror Trading International (MTI) Was By Far 2020’s Biggest Scam Globally, Says Chainalysis 2021 Crypto Crime Report: https://t.co/pHvDoQ5jqg @chainalysis @FSCA_ZA 🇿🇦
— BitKE (@BitcoinKE) February 12, 2021
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