A massive effort is underway to prevent the collapse of Mirror Trading International
Mirror Trading International, a get-rich-quick scam, was the subject of a protracted legal
struggle in the Western Cape High Court (MTI).
This follows the postponement of the hearing for MTI's final liquidation from May 31 to
June 15, 2021.
MyBroadband has discovered that judgement in the matter has been reserved, but the legal
team that argued in favour of liquidating MTI is sure that the ultimate liquidation
order will be given.
MTI was a South African network marketing fraud that purported to provide automated
trading services — first in forex and then in bitcoin derivatives.
During 2019 and 2020, it accumulated bitcoin worth billions of rands.
In the most current edition of its Crypto Crime Report, Chainalysis dubbed MTI the largest
cryptocurrency scam of 2020.
According to court documents obtained by MyBroadband, the battle lines were established between
Clynton Marks, a 50 percent shareholder and former Head of Referral Programme and Members
at MTI, and a team of five liquidators appointed provisionally to the case.
Whether these two groups should be allowed to join the liquidation action as intervening
parties was one of the legal details debated before Acting Judge Alma de Wet.
The liquidation hearing proceeded, with the intervening parties recognised, according
to news from within the courtroom.
Marks further claimed that he and his partner Cheri Marks, who was MTI's Head of Communications,
were not served with the liquidation notice.
Marks' basic claim is that the attorneys who filed the original liquidation application
would have known full well that he and his partner were MTI employees and leaders.
Because the Financial Sector Conduct Authority (FSCA) had raided Marks' residence in connection
with MTI, the attorneys would have known where to find him.
In addition to the technical concerns cited, Marks maintained that the recovery of around
1,200 bitcoin belonging to MTI from its prior Belize-based broker, FX Choice, demonstrated
that the company was not bankrupt.
The found bitcoin is believed to have already been converted to cash by the liquidators.
According to Moneyweb, which cites Ovex, the selling of the coins for 1.1 billion Rands
briefly lowered the price of bitcoin on South African exchanges in April.
Judge De Wet did not appear to be moved by any of the arguments presented in opposition
to liquidation.
While the verdict is being awaited, insiders within the liquidators' legal team told MyBroadband
that their opponents were vastly outmatched and that they are certain that a final liquidation
order would be obtained.
When MyBroadband approached the Marks for comment, they stated that they do not believe
the liquidators have the best interests of the members in mind.
“This is mirrored in their responding affidavit, in which they assert unequivocally that members'
wishes are unimportant.
This is not our opinion.
We also don't believe it's appropriate to "go after" MTI members for anything Johann
may or may not have done, according to Cheri Marks via email.
The liquidation application was, according to the Marks, filed too soon.
“MTI is a solvent firm, and any hope of relief for members (however tiny) would come
from finding Johann and correctly encouraging him to remedy whatever wrongs he has allegedly
committed, rather than from the liquidation process.
Furthermore, we believe that there are additional choices that would result in MTI members receiving
relief.”
Marks stated that if the liquidation went ahead, members would be severely harmed by
the liquidators' efforts.
When asked what would happen if the liquidation were to be blocked, Marks stated that this
is an issue currently before the court and that answering the question now would be premature.
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