Liquidators of the now defunct bitcoin trading platform, Mirror Trading International, have so far used approximately $4.2 million on expenses such as lawyers’ or consultants’ fees. Between Jan. 23, 2023, and the date of their appointment, liquidators claimed to have recovered approximately $770,000 which belonged to MTI. Mirror Trading International ceased operations on January 23, 2023. The high amount of legal and investigative expenses for liquidators raises questions about whether these costs were necessary or whether they could have been saved by other means. The high costs also suggest that regulatory oversight of MTI may not have been adequate.
Liquidators of collapsed bitcoin Ponzi scheme spend millions on lawyers and consultants
According to data that has been released, liquidators of the collapsed bitcoin Ponzi scheme Mirror Trading International (MTI) have spent approximately $4.9 million on lawyers and consultants so far. This is an estimate based on the information that has been made public thus far, as the actual amount is likely to be higher.
Between January 23 and when MTI assets were transferred into the hands of liquidators, the group has recovered around $770,000. However, the group is less certain about the growth rate of their expenditure and expects an “exponential increase in the amount recovered from the so-called net winners.” This is in reference to those who were believed to have profited from MTI’s fraudulent operation.
What is particularly worrying for liquidators is that they are unsure about the identity of all of the scheme’s participants and are therefore anticipating an increase in recoveries. This could mean that they pay out a much higher sum than currently envisaged.
Liquidators of collapsed bitcoin Ponzi scheme spent millions on lawyers and investigators in an effort to salvage as much money as possible for their customers. By doing so, these organizations are fulfilling their fiduciary duty and protecting the interests of their customers.