Less than a month after a Cape Town Supreme Court a preliminary settlement order against Mirror Trading International (MTI), Liquidators are trying to expand their powers to investigate the company and win back funds from investors.
according to Herman best, one of the four appointed liquidators, The team must operate in multiple jurisdictions to determine the full scope of MTI’s operations.
The liquidators try to keep track of all of the company’s assets. After this process, the team will submit a formal report to the court in which the Likelihood of successful return of investor funds to victims of the alleged fraud.
according to Bloombergcan the courts a final arrangement for the liquidation process on March 1st if the process continues unhindered. The first meeting of MTI’s creditors takes place two months after the court order to vote on a final liquidator. Judging from previous liquidations related to cryptocurrency fraud, MTI creditors may still have a long way to go.
As previously reported by Cointelegraph, Both the Texas State Securities Board and the South African Financial Services Conduct Authority took action against the company in 2020.
MTI is accused of misleading its customers into investing in its systemand promises a return on investment of 10% per month. The alleged Bitcoin (BTC) MLM program is also said to have more than 260,000 investors from more than 170 countries.
However, The FSCA’s investigation of the company’s business revealed no evidence that the company’s trading operations were successful. Overall, at the current price of Bitcoin, MTI is believed to be around 23,000 BTC worth more than $ 880 million.
According to the South African media broadcaster The Citizen, Leaked internal communications indicate that the company’s top executives were unaware of the scam. According to the details of the Zoom meeting in question, only the CEO Johann Steynberg He was in full control of the company’s operations.
According to reports Steynberg is absent and should be in Brazil. Also, nobody has heard from him since December 2020. The latest official announcement from the Polokwane resident was a denial of allegations against the company.
MTI is one of several suspected cryptocurrency scams in South Africa. These investment programs take advantage of Bitcoin’s popularity in the country to fleece unsuspecting victims.
In July, Willie BreedtThe operator of the VaultAge crypto scam, which allegedly stole more than $ 16 million from 2,000 investors, has been declared bankrupt. Breedt had previously fled the country to neighboring Mozambique during the full investigation.