Now is not the time to lose Hope.
Some very positive and possibly some of the best news we have had since this MTI Liquidation has come to light.
- The liquidators and SARS have settled on a manageable amount for the SARS claim.
- In a letter from the Liquidators to GetaQuid they have confirmed to us the following in writing:
- "With reference to your queries into the financial affairs of MTI, we confirm that the liquidators will as soon as legally possible, proceed to lodge the First Liquidation and Distribution Account, which will contain a record of all the financial transactions which have taken place since date of their appointment. The Liquidation and Distribution Account will ultimately lie open for inspection for investigation by any proved creditor, who would then be entitled to raise any objections, should they deem same necessary."
- Further in the letter from the liquidators the following:
- "We therefore request you to urgently request your clients to upload their claims and supporting documents to the COGC system, to which representatives of the liquidators have access, to enable us to assist them with the completion thereof."
We also have for ease of reference transcribed into English a significant interview aired by RSG Geldsake, with Herman Bester representing the MTI Liquidators.
This interview clearly supports the situation that was reflected in the extracts of the letter quoted above.
The following points are significant and of value to all the creditors:
The SARS claim has been settled at the value of R283 million Rand. The amount equates to approximately a third of the current declared recovery. The initial SARS claim was almost to value and would have left the creditors with nothing.
Herman Bester (appointed Liquidator) estimates that a payment of approximately 50 to 60 cents in the Rand will be paid out to the approved creditors. These figures can be significantly improved by the de Wet judgement to facilitate the recovery of further assets from the principal directors and main players (Net Winners).
▶ By way of explanation for those who do not understand "a payment of approximately 50 to 60 cents in the Rand" means that for every Rand that was deposited (equivalent), the creditor may receive .5 to .6 of the Rand value subject to offset of the withdrawals.
▶ An 'approved creditor' will be a MTI investor who has had a claim submitted against the MTI estate and which the Master has approved.
Sign-up here so that we can get your Claim Approved: https://getaquid.com/subscription/
GetaQuid still needs to clarify other matters that we are in discussion with the Liquidators and from the information gleaned in the interview we represent approximately 20% of all the creditors.
Our offices have been and will deal with your enquiries as best we can and we extend an open invitation to all our members if they need further clarification.
GetaQuid also wishes to extend their thank you to those that have joined us as members and the support they have and are giving to others that need representation and support.
Here is the interview between Ryk van Niekerk (Radio announcer on RSG Geldsake) and Herman Bester from Tygerberg Trustees, (MTI Liquidator) - Translated into English. *
See full reference information and link at the bottom of the page.
Please note this is not a word-for-word translation - it captures what we consider the most important and relevant points.
Ryk: Mirror Trading International (MTI) was the largest Ponzi scheme ever in South Africa and one of the largest Crypto schemes in the world.
MTI made its appearance in 2019 and promised investors returns of up to 30% per month in trading with Cryptocurrency, and reportedly, 200,000 people invested. This can amount to up to 30,000 bitcoin.
The scheme collapsed in 2020 and the mastermind Johan Steynberg fled to South America and was later spotted and arrested. He has been in a Brazilian prison for almost 18 months now. The US regulator (CFTC) fined Steynberg 64 billion rands last month. This is the biggest fine they have ever imposed. The court found that MTI received 29,400 Bitcoin from investors. The Cape High Court also found that MTI was an illegal Ponzi scheme in South Africa.
Today, the MTI Liquidators also announced that it has reached an agreement with the South African Revenue Service. The Liquidators will pay 283 million rands to the revenue (SARS) service. Their original claim was 931 million rands.
Herman: We have continuously received claims from investors who have lost money in this scheme. Next Friday we will have the fifth meeting, and a special meeting will take place, where creditors prove their claims. To date, 917 million rand has been received. Five and a half thousand claims have been received and there are currently 1.2 billion rands in the estate. This money is available for further distribution at a later stage after all costs have been taken into account.
Ryk: So now that the scheme has been declared illegal in South Africa and that it is a criminal network, it changes the liquidation process a lot?
Herman: The greatest effect on us as liquidators, of the court ruling that it is a Ponzi scheme is that, the contracts are considered void and the company is seen as a scheme that never had a legal existence. Those investors who have always believed they have earned a profit and that they are entitled to receive that profit can now lay that hope to rest.
It has now been found by the court that those profits never existed and that the trading never existed. All that an investor is entitled to get back now, is basically what they have put in and have not yet received back.
It changes the playing field for us as liquidators. Because now the rules are clear in terms of how we can follow up the net winners and claim back the profits that they received.
The order given last month by the Judge makes it possible for us to proceed immediately claiming back those profits from the net winners. Until the scheme was declared illegal you had to prove in every application that it was an illegal scheme. That was the basis on which the claims were made and the money repaid. That work has already been done. The court order affects the basis on which that money is now collected. So it will only gain momentum now.
Ryk: Claims have been filed for 913 million rands and there are 1.2 billion rands in the estate. And some of that money needs to be paid to the Revenue Services. What can investors expect to be paid out, since it seems like there is a lot of money left?
Herman: We have received about five and a half thousand claims now as I said before. There is always a large portion of creditors in such a scheme that do not file claims because of the nature of the funds used to make the investment initially.
But even if a further 10,000 claims come in, investors should at least get in the rand in the vicinity of 50 and 60 cents. It depends on the extent to which we are successful in collecting the money back from the net winners. We must also remember that many of the net winners got rid of those funds. So in theory we know that we can potentially progress, but how successful we will be, we will have to see.
With this type of scheme, investors usually would not receive any dividends. When SARS initially filed a claim, it was concluded that the investors would not get a dividend, but with the settlement, we reached with SARS, there is now hope for a substantial dividend.
If you want to make use of GetaQuid's resources and support to get your claim submitted and approved you have to subscribe. Here is the subscription link, please subscribe to our group class action and claim submission support service: https://getaquid.com/subscription/. We would love to help you, upon subscription you will receive direct links to the COGS record-keeping system and have access to your own private mobile app to monitor the progress of your account. If you have any difficulties or need help setting this up you can get additional Administrative Support here. https://getaquid.com/support/. When you have subscribed you will receive links and access to the full backend with all the instructions written and in video form. When you are a member, all our support staff will assist you to get your claim submitted and cleared, as soon as practically possible.
(*) - Reference:
Above translation of the following interview originally conducted in Afrikaans:
