While South Africa’s authorities continue to do nothing, civil Mirror Trading International liquidation proceedings continue.
The latest is a ten-page provisional order, defining actual victims from the scheme against net-winners.
As per the High Court’s August 31st order, MTI’s liquidators have been instructed to treat bitcoin invested into the Ponzi scheme as “property”.
Pursuant to that, liquidators will then group MTI investors as follows:
Class 1 Investors – victims who invested and didn’t receive anything from MTI
Class 2 Investors – victims who invested, received some money back but are still net-losers
Class 3 Investors – scumbags who stole money through MTI
Class 1 and Class 2 Investors who intend to file a claim will have to do so in South African Rand, calculated at the time of investment.
Note that claims for monopoly money backoffice amounts are disallowed. Class 1 and 2 Investors can claim what they actually invested, that’s it.
The court approved liquidators going after Class 3 Investors as per the Insolvency Act. This seems to be contingent on Class 3 Investors filing claims, and I’m unsure on why this would happen.
Being a provisional order, the High Court has yet to approve any of this going forward.
Anyone upset by the order (Clynton and Cheri Marks etc.), has until October 31st to whinge to the court. Once those objections have been dealt with, presumably the court will make the order final.
Still not clear on what the end-game for MTI liquidation proceedings is. Back in July South Africas Revenue Service made it known they intend to seize more than has thus far been recovered.
Until someone makes a move against the Marks crime family and other MTI insiders, sorting investors into victim groups doesn’t count for much.