Simon Ng Investors entangled in the South African cryptocurrency fraud scheme, known as Mirror Trading International (MTI), may see a fraction of their funds returned, pending court directives on how liquidators should manage the claims. The liquidators anticipate conducting multiple disbursements to the impacted investors, with the whole process projected to span between two to three years.
Table Of Contents
Expected Returns Ranging from 50% to 60% for Net Losers
The liquidators managing the insolvency of Mirror Trading International, a fraudulent Bitcoin investment platform, await court guidance on the methodology for settling claims, according to a recent report. Herman Bester, a co-director at Tygerberg Trustees, stated that clarification is also being sought from the court on the handling of deposits made by investors in Bitcoin.
A report by Mybroadband, however, notes that Bester and his team have not fully confirmed a strategy that would result in net losers—investors who lost more than they gained—receiving only 50 to 60 cents on each dollar invested. The financial resources for this restitution plan would be sourced from the sale of approximately 7,000 Bitcoins, a fraction of the over 39,000 Bitcoins initially claimed to be deposited into the fraudulent scheme by the liquidators.
Identification of Individual Investors Underway
Regarding the number of participants who may be eligible for reimbursement, Bester revealed that the liquidators are currently working on identifying and separating individual investors from the broader pool of victims. He further noted:
“Our forensic specialists have engaged in a thorough process of data analysis and have now approximated the anticipated volume of potential claims.”
The liquidators also clarified that they do not expect every victim to file a claim, particularly those suspected of using the cryptocurrency for money laundering or other questionable activities.
Multiple Disbursements Over an Extended Timeline
In terms of the timetable for compensation, the liquidators reportedly aim to execute more than one payout. They anticipate the necessity to “continue with collections from winners who must repay their winnings,” a process that Bester estimates could extend for an additional two to three years.
To stay informed on African news on a weekly basis, register your email here:
African Crypto Newsletter
Summaries of the leading cryptocurrency news of the week
Sign up
We welcome your thoughts on this unfolding situation in the comments section below.
Frequently Asked Questions (FAQs) about South African Bitcoin fraud recovery
What is the main issue addressed in the article?
The article discusses the anticipated partial financial recovery for investors who fell victim to the fraudulent scheme orchestrated by Mirror Trading International (MTI) in South Africa. Liquidators are awaiting court guidance on how to proceed with the claims.
Who are the liquidators and what are they planning to do?
The liquidators are managed by Herman Bester, a co-director at Tygerberg Trustees. They plan to initiate the refund process for victims of the MTI scam once they receive directives from the court on how to handle the claims and the treatment of Bitcoin deposits.
What is the expected timeline for the reimbursement process?
The liquidators expect the entire reimbursement process to take between two and three years. They also anticipate making more than one disbursement to affected investors during this period.
What percentage of their investments can the net losers expect to get back?
The so-called net losers, or those who lost more money than they gained from the scheme, can expect to recover between 50% and 60% of their initial investments, although this has not been fully confirmed.
How will the funds for reimbursement be sourced?
The funds intended for the reimbursement scheme are expected to come from the sale of approximately 7,000 Bitcoins. These Bitcoins are what remain from an initial deposit of over 39,000 Bitcoins into the scheme.
Are all victims eligible for a refund?
No, the liquidators are in the process of identifying individual investors from the broader pool of victims. Moreover, they do not expect victims who may have used the cryptocurrency for illegal activities, such as money laundering, to file claims.
What should interested parties do to stay updated on this matter?
Interested parties can register their email to receive a weekly update on African news, including ongoing developments related to the MTI case.
More about South African Bitcoin fraud recovery
- Mirror Trading International Official Statement
- Mybroadband Report on MTI Scam
- Tygerberg Trustees Website
- Cryptocurrency Scams and Legal Procedures
- Court Procedures for Liquidation in South Africa
- African Crypto Newsletter Signup
7 comments
Good to see some justice. Yet, why does it take so long? Laws need to adapt to the speed of the crypto world for sure.
Seriously? Only 50-60%? They should aim higher, but then again its better than nothing at all.
Its hard to trust crypto when scams like these happen. But I do appreciate that they’re making an effort to refund people.
2-3 years for the whole process? thats a long time to wait, I wonder how many will actually stick around to claim their funds.
Wow, didn’t think anyone would get their money back from this mess. Good on the liquidators for trying, i guess.
What about the ppl using it for laundering? Guess they’ll just disappear now lol.
Very interesting dynamics, especially on how liquidators will convert BTC to fiat. would love to see a follow-up article on that.