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In a development that underscores the vast scale of the Mirror Trading International (MTI) crypto Ponzi scheme, liquidators have disclosed that only around 10,000 out of the hundreds of thousands of members may receive a dividend payout ranging from R0.50 to R0.60 ($2.61 to $3.13) per unit.
MTI, a company founded by the disgraced South African tycoon Cornelius Steynberg, has been embroiled in controversy since its collapse. Liquidators revealed that this payout is extended to a mere fraction of the more than 200,000 MTI member accounts listed in the company’s database. Furthermore, they predict that the total number of claims may ultimately amount to just 10,000 or even fewer.
The paucity of claims is attributed to various factors, with some members opting not to come forward, likely to avoid being identified. Additionally, there have been instances of fraudulent claims and incomplete or duplicate submissions. Liquidators caution that more claims could be invalidated as further investigations progress.
This announcement comes on the heels of a landmark ruling approximately five months ago when a U.S. federal court ordered Steynberg to pay $3.4 billion in restitution to victims of forex fraud.
In compliance with this court order, Steynberg and MTI must disburse $1.7 billion in restitution to defrauded victims and an additional $1.7 billion in civil monetary penalties. This penalty sets a record for any case the U.S. Commodity Futures Trading Commission (CFTC) handles.
The legal action against Steynberg, the mastermind behind one of the largest Bitcoin fraud cases ever pursued by the CFTC, commenced over a year after he was initially charged by the regulatory body in July 2022. The charges revolved around allegations of soliciting Bitcoin online from thousands of individuals to operate a commodity pool.
MTI, represented in court, argued against the allegations of fraud, misrepresentation, and misappropriation, which involve at least 29,421 bitcoins valued at more than $1.7 billion by the end of the period under scrutiny. Notably, the victims of this alleged fraud include approximately 23,000 people from the United States, with over 1,300 residing in Texas.
The unfolding saga of MTI serves as a stark reminder of the far-reaching consequences of cryptocurrency-related scams, both for victims and the legal authorities tasked with bringing perpetrators to justice. Liquidators continue to work diligently to untangle the complexities of this case, with the ultimate goal of providing restitution to as many defrauded members as possible.
