Bid to Have MTI Ponzi Declared Unlawful Scheme Suffers Setback — More Investors Oppose Motion – Bitcoin News

Bitcoin.com

A slew of late court filings by lawyers representing Mirror Trading International (MTI) investors has forced a South African judge to postpone the hearing of the liquidators’ application to have the online bitcoin scam declared an illegal business.

Concern Over Implications of Declaration Order

As a Mybroadband report explains, the investors’ belated decisions to oppose the motion stems from growing concerns that such a declaration would give liquidators too much power. Before the latest counter applications, only Clynton and Cheri Marks — the co-masterminds of MTI — had opposed the liquidators’ motion.

How To Get Free Crypto  

However, as the report states, other investors have now come to the conclusion that the liquidators could be “seeking powers that would allow them to claw back the withdrawals of all members, even if they lost money in the scheme.”

In other instances, investors have been warned if “MTI is declared a pyramid or Ponzi, then all profits would be declared proceeds of a criminal enterprise and would be forfeited to the state.” This means that instead of recovering part of their invested funds once the liquidation process is complete, to add insult to injury they would also be asked to pay back what they withdrew.

Liquidators Refute Claims

Nevertheless, liquidators have refuted the claims, according to the report. They insist they “will only be entitled to recover payments made to investors which were not legally owed to them.”

MTI, which was branded the largest bitcoin scam in 2020, collapsed after the firm’s CEO Johann Steynberg disappeared. Since then, court-appointed liquidators have been attempting to recover all bitcoins associated with MTI but have encountered resistance mainly from the Markses. However, some believe that when armed with the declaration, liquidators will be able to pursue individuals that unduly benefitted from the scheme without facing many legal hurdles.

Coinbase Banner  

Meanwhile, in addition to setting the new hearing date, the judge’s order also directs the applicants to supplement their affidavits in support of the relief that they seek by September 30, 2021. The Financial Sector Conduct Authority (FSCA) has been given until the same date to file a further affidavit should it decide to do so.

Similarly, both opponents and supporters of the motion “to have MTI declared an unlawful scheme have until September 30, 2021, to file an affidavit in support thereof.”

Do you agree with the liquidators’ push to have MTI declared an unlawful scheme? Tell us what you think in the comments section below.

Tags in this story

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

FreeBitcoin Banner  

Read disclaimer

Go to Source
Author: Terence Zimwara


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.