The Cape High Court in South Africa has appointed four provisional liquidators to track assets and liabilities of the now defunct Mirror Trading International (MTI) which is expected to be followed with liquidation orders.
The provisional liquidators have until March 1, 2021, to submit a report outlining the assets and liabilities of MTI before a liquidation order is granted.
All MTI investors – even if they didn’t make a profit from MTI – will be required to hand over any money they took out, including their original deposit.
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MTI, an alleged ponzi scheme which claimed to be trading in Bitcoin derivatives, was accused of conducting illegal unregistered financial services business in October 2020 by the Financial Sector Conduct Authority (FSCA) of South Africa.
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 multilevel marketing system.
In late 2020, the scheme collapsed.
In 2020, FSCA obtained search and seizure warrants and executed them at the home of the CEO, Johan Steynberg. Soon thereafter, the CEO fled South Africa.
Looking at the information from the MTILeaks and official “trading pool” data from MTI itself, the capital taken in by the scheme stood at well over 23,000 bitcoin before deposits were shut down in December.
MTI claims to have over 280, 000 members worldwide.
Like many similar cryptocurrency “investment” scams, there were multiple red flags that should have scared investors away from Mirror Trading International.
When a crypto investment guarantees over 500% interest per annum, similar to MTI, it beats basic rationality. If MTI continued to grow at the rapid rate it claimed it was growing, it would eventually have owned every bitcoin in existence (or at least every bitcoin in circulation) in about 3-4 years.
Like many other scams before it, such schemes eventually collapse fuelling the ‘bitcoin scam’ narrative.
NB: Creditors are requested to submit claims in anticipation of the upcoming liquidation order by visiting the website: www.mtiliquidation.co.za
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RECOMMENDED READING: The FBI Lists 4 Universal Crypto Scams You Need to Be Wary of Related to the COVID-19 Pandemic
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