Summary

• Summary of where we are at the moment. 0:00
  • A brief summary of where they are at the moment; the most important thing is that the judge has declared “MTI Investment scheme” a ponzi scheme.
  • An appeal has been Lodged by Marks against the above judgement. If the judge denies the appeal, they can go to the court of appeal and ask for permission to appeal.
  • There is an outstanding judgement with regards to the calculation value that will be used to determine the claim value of the claims that are instituted by investors and the settlement value that liquidators will go with.
  • Three issues, the declaratory order is still outstanding.
• Outstanding judgement on leave to appeal. 4:09
  • Chris shares his take on the outstanding judgement by the South African court of Appeal on the quantification of the claims of investors who have lost money.
  • Chris shares his thoughts on the timing of the final decision by the court on the policy.
  • The decision to settle the South African tax case is based on the fact that the investments that are received from investors are considered to be income because “a thief derives his income from defrauding people.”
  • The settlement will wipe off what is currently available for accredited tax purposes.
  • If not settled, there will be no tax payable, and if not, it will be a six-year tax payment.
• The tax implications of trading losses. 10:37
  • The question of whether investors will have to pay tax on what they made if they did not make a profit from their investments.
  • Chris is not yet giving tax advice.
  • No evidence anywhere that there has been trading or that there was an increase in the assets as a result of the natural growth of the actual bitcoin.
  • Investigations by all the forensic experts have come up with the same result.
• Appeal to the supreme court. 13:46
  • The company is waiting for one or two issues to be resolved, the declaratory order to be resolved, and the appeal to be declined.
  • If the appeal is turned down, there is a time limit on when the application to the supreme court in Bloemfontein is submitted.
  • The final liquidation and distribution account is set for November, but there will be no further delays, as the court will not allow something like this to be dealt with on an urgent role.
• Quantification of the claims. 18:58
  • Before clarity from the court on how to quantify the claims, they have calculated all the claims that have come in on the application to the court.
  • They are in the process of launching their first account to deal with the dividend paid to Sars in terms of the settlement.
• How long will it take to collect the winnings? 22:05
  • They are dealing with the back office at the liquidator's office on almost a weekly basis. They share information with them and look up information if there are shortages of information.
  • The number of accounts divided up into different classes of winners per number of going is between 28 and 30,000 accounts.
  • The potential collections that are being taken into consideration, taking all the winners into consideration.
  • There is no doubt that the ponzi scheme will be challenged, but the longer this is frustrated by the net winners and by certain people, the more money is being spent and lost at the expense of the creditors.
• How much will it cost to prosecute? 27:53
  • The costs up to date are not going to be repeated, the amount of money spent is limited.
  • The funds used to pay for what has been achieved so far will be an investment, as far as the court orders are unopposed.
  • Make sure that the Net Winners pay for the cost of recovering that money. Make sure they're paying for getting that money back.
  • It's also very important that the net losers or net equity losers do submit claim forms to assist the liquidators with the claim amounts