MTI Liquidators Reject Claim Peddled by Opponents, Insist the Entity 'Was a Massive Fraudulent Scam'

Liquidators of Mirror Trading International (MTI) have attacked the claim that declaring the collapsed bitcoin investment platform an unlawful scheme would jeopardize investors’ chances of recovering their funds.

The Unsubstantiated Claim

South African liquidators of Mirror Trading International (MTI) have rejected the claim that declaring the collapsed bitcoin investment platform an unlawful operation would result in victims losing everything. The liquidators suggested that the “unsubstantiated” claim is being propagated by a few MTI investors and their legal representatives.

According to a Mybroadband report that cites a circular issued by Investrust, the liquidators are adamant that there is no evidence that supports the claims. The report said:

The available evidence is overwhelming and uncontroverted: MTI was a massive fraudulent scam, and this will remain the position.

The liquidators also warned MTI investors who stand to lose everything that they should not be hoodwinked by claims that the business only collapsed due to “bad trading.” In their circular, the liquidators insist MTI was from the start a “scheme run by top-tier investors and promoters to milk bitcoin from later investors and the lower tiers daily.”

MTI Not Solvent

Meanwhile, the report suggested that liquidators — whose High Court application to have MTI liquidated is set to be heard on March 2, 2022 — were seemingly forced to respond to claims being made by Hendrik van Staden, a lawyer who represents a group of creditors. In addition to his warning that investors will lose everything, Van Staden has reportedly told his clients that everything will be forfeited to the state if MTI is declared an unlawful business.

“This statement is completely wrong and disingenuous. The legal position in these circumstances is trite. It is irresponsible and shockingly inaccurate statements like this, that cause investors to unfairly question the motives and integrity of the liquidators,” the liquidators said in their response to Van Staden’s claims.

In their circular, the liquidators also pushed back against claims that MTI was still solvent. They said the growing number of claims against MTI means the amount owed to creditors will soon exceed the value of 1,282 bitcoins that have been recovered to date.