MTI Customers Denied Of Withdrawing Their Bitcoins, High Court Grants Interim Relief

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Two of Mirror Trading International (MTI) investors filed applications before South African High Court for seeking relief against MTI.

It was alleged in the applications that the customers had moved the Bitcoin withdrawal application which was submitted to MTI. However, MTI refused to allow the customers to withdraw their Bitcoins. Being aggrieved, the customers moved an application before the South African High Court seeking relief against MTI.

The High Court recently undertook the hearing of the case and passed an interim order. In the interim order, the court had asked MTI to immediately allow the customers to withdraw their Bitcoins. Through the interim order, the Court had also appointed an Official Liquidator who would overtake liabilities and assets belonging to MTI.

It was reported that the Court came into motion when the Financial Sector Conduct Authority (FSCA) also endorsed receiving similar complaints. FSCA apprised the Cape Town Court that there had been several other complaints lodged by MTI customers. It also told the Court that MTI had been operating a Ponzi scheme and embezzled the money of local investors.

It was also pointed out to the Court by FSCA that MTI’s CEO, Johann Steynberg had fled the country. Steynberg was to be apprehended by the Authority but someone told him and he managed to escape. It was informed to the Court that MTI’s CEO had fled to Brazil.

Meanwhile, MTI’s staff told the Authority that MTI’s CEO had not been in contact with them since he had left the country. It was further revealed that staff had been denied access to the administration area of the website by the CEO. Therefore, they could not act upon the withdrawal requests sent by MTI’s customers.

FSCA had further informed that it was now working with the management of MTI in order to refund the money to their original beneficiaries.

It seemed that the days of MTI in South Africa had come to an end.

In many parts of the world, MTI had already been labeled as a fraud and promoter of fake crypto Ponzi schemes. However, through the interim order, the South African Court had appointed an official liquidator to dispose off assets of MTI. The funds generated from the sale of MTI’s assets will then be used to refund the customers.