A series of late court filings from attorneys representing Mirror Trading International (MTI) investors have forced a South African judge to postpone hearing the liquidators’ motion to declare online bitcoin fraud an illegal business.
Concerns about the effects of the declaration arrangement
As a Mybroadband report explains, the belated decisions by investors to oppose the motion are due to growing concerns that such a declaration would give too much power to the liquidators. Prior to the latest countermotions, only Clynton and Cheri Marks – MTI’s co-masterminds – had opposed the liquidators’ motion.
However, as the report notes, other investors have now concluded that the liquidators “could seek power that would enable them to reclaim all members’ payouts even if they lost money under the system.”
In other cases, investors have been warned that if “MTI is declared a Pyramid or a Ponzi, then all profits would be declared as proceeds of a criminal company and would be forfeited to the state.” Liquidation proceedings to increase the damage even further would also be asked to repay what they withdrew.
Liquidators reject claims
Still, liquidators have refuted the allegations, according to the report. They insist that they “are only entitled to reclaim payments from investors that are not legally owed to them”.
MTI, dubbed the biggest Bitcoin scam in 2020, collapsed after the company’s CEO Johann Steynberg disappeared. Since then, court-appointed liquidators have been trying to get back all MTI-related bitcoins, but have mainly encountered resistance from the Markses. However, some believe that when provided with the declaration, liquidators will be able to track individuals who have unduly benefited from the system without facing many legal hurdles.
Meanwhile, in addition to setting the new hearing date, the judge’s order also instructs applicants to add to their affidavits in support of the remedies they have requested by the September 30, 2021 date to include another affidavit if they so choose .
Similarly, both opponents and supporters of the motion to “have MTI declared an illegal system have until September 30, 2021 to submit an affidavit”.
Do you agree with the liquidators’ request to have MTI declared unlawful? Let us know what you think in the comments section below.
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