The orchestrators of a popular bitcoin Ponzi scheme operating in South Africa have been ordered to repay $291 million in restitution for their fraudulent activities. Mirror Trading International (MTI) ran the bitcoin Ponzi scheme, and eighteen individuals involved are currently facing legal action.
The liquidators in charge of the case have demanded that individuals implicated in the scheme compensate those who were affected. The liquidators have summoned everyone involved, and they have been required to pay 4,666,077,528 Rand, approximately $291 million.
The summons was issued in part because the liquidators were unable to convince the South African judiciary to classify the platform as a Ponzi scheme. Attempts by liquidators to recover funds have been thwarted by some MTI investors. When the liquidators file a request with the court, the lawyers representing some of the investors often interfere with the proceedings.
Investors firmly oppose the activities of the liquidators because they believe that the latter’s actions will not benefit them. Liquidation reduces the chances of MTI compensating its investors.
According to reports, investors have also filed a petition asking the Pretoria High Court to hold the promoters of MTI accountable for the loss as stipulated in the Companies Act.
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