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MTI Liquidation Update: Insights and Strategy from Senior Legal Counsel

The GetaQuid Team has taken a significant step forward by consulting with senior legal counsel to gain a formal opinion on the current proceedings led by the liquidators in the MTI case. Our findings indicate that the liquidators' current approach may have legal flaws, and we've successfully managed to delay actions, aligning with the wishes of our investors. Here's an essential overview and advice on navigating the situation, though remember, this is not legal advice but practical guidance.

Please note that the consultation process mentioned in this document is currently active and evolving. Here, we aim to spotlight pivotal considerations being explored by our legal counsel. Should you require assistance, our team is ready to support investors in analyzing their specific situations. We're also prepared to facilitate further legal consultation or assistance in setting up necessary accounts with legal experts. It's important to recognise that legal nuances and requirements may vary by jurisdiction, an aspect that demands careful consideration in each case.

 

 

 


Key Takeaways from Our Legal Consultation

1. Summons and Communication: It's crucial to understand that a summons cannot merely be served via email. Letters of Demand are currently being served by email.

Responding to a Letter of Demand, Emails, and text messages: You are not legally bound to respond to emails or demands from the liquidators’ assignees, Vezi de Beer, or other firms. The function is to intimidate you and scare you into settling. The threat of 10 days to reply has no legal force.

( For your information a record from our communications; “The attorney representing the GetaQuid clients and I had a discussion a few weeks ago. He said that the liquidators have not responded to their replies on behalf of investors who received demands. Accordingly, he says that it is pointless to respond to Letters of Demand if such responses are ignored and summonses will merely be issued. Investors should rather wait for the summons and instruct us when they receive it.

Normally we would not advise to ignore Letters of Demand. However, with regard to the above and that the Letter of Demand and Summons are normally served together, I would suggest that you follow the attorney's advice. It is your decision, if you want the attorney to respond to the letter of demand, just instruct us.

Thus, for the moment just ignore the Letter of Demand. Should you respond, they will continue bombarding you with messages.”)

A summons is served by the Sheriff of the court.

Legal protocol requires personal service at an individual's residence or place of employment. If you receive a summons in any form, do not ignore it, legal advice should be sought immediately. Address it promptly to avoid any adverse judgments. And most of all do not Panic.

2. MTI Investors who are currently receiving Letters of Demand and Summons:

Net Winners - Investors who withdrew more than they deposited

Net Losers - Investors who withdrew less than they deposited, but withdrew something

Wholesale Net Loser - If you only made a deposit and did not withdraw anything, you should not receive a summons or letter of demand

Why are Net Losers, who withdrew funds , being served a summons or receiving Letters of Demand?

The liquidators believe they are entitled to ensure that everyone pays back what they withdrew, and then claim.

3. Investment and Withdrawal Records: For those who invested in MTI, it's vital from your records (e.g., Luno, Valr) to ascertain your investment in Bitcoin and its rand value at the time of investment and withdrawal. This will help determine if you are a net loser or winner, a crucial starting point for any claims.

4. Withdrawals to Another Wallet: Any BTC withdrawn to another's Bitcoin wallet counts as a withdrawal from MTI. However, transferring BTC within MTI to different MTI user IDs under your name, without actual withdrawal, does not count as a withdrawal.

5. Prescription of Debt: The prescription period for a debt is three years, but it doesn't start until the creditor is aware of the debtor's identity and the claim's details. The liquidators' actions suggest they are mindful of this prescription timeline, as issuing summonses can interrupt the prescription period. There is still an argument around the prescription date.

6. MTI's Liquidation Grounds: It's important to note that MTI was liquidated not due to insolvency but because it was just and equitable to do so. This doesn't affect the issuance of summonses in the interim.

7. Handling Claims: If you're a net loser, detailed documentation of each Bitcoin deposit and withdrawal, including dates and rand values, is essential for your claim. An affidavit supporting your proof of claim will also be necessary.

Disclaimer

Please consult an attorney before acting on any information provided here. This update is meant for general guidance and does not constitute legal advice.

 

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