Bitcoin scam probe in top gear

This is what the Mirror Trading International (MTI) liquidators have found so far: 1 281 Bitcoin, three immovable properties worth approximately R6.5 million, more crypto wallets in the Seychelles, silver worth approximately R1.4 million and two expensive 2020 model Jaguar SUVs bought for approximately R3.2 million.

MTI, a bitcoin-trading platform was placed into final liquidation in July. The liquidators also found that the kingpin, Johann Steynberg, paid R933 000 through his company, LNX Online, into the bank account of his wife, Nerine.

She testified at the liquidators’ inquiry that this money was not owed to her and that she considered it a contribution by her husband to the household expenses. She will now face several claims for repayment of these amounts.

The scam ran into billions and was called the biggest crypto scam ever.

Steynberg disappeared in December last year, and according to rumours was in Brazil and Panama. He has not been found yet.

Six final liquidators were appointed at the first meeting of MTI creditors with the Master of the High Court on 5 November. The liquidators are Herman Bester, Riaan van Rooyen, Jacolien Barnard, Deidre Basson, Christopher Roos and Chavonnes Coopers.

According to the liquidators, they have made massive progress so far, interrogating nearly 60 role players, including “some masterminds trying to masquerade as legitimate creditors with valid claims”, who were unmasked.

They scrutinised all new claims to ensure duplicate or fake accounts are not registered due to the massive fraud, dubious trading platforms, excessive commissions and fictional transactions that were rife before the disappearance of Steynberg, who presented himself to investors as the CEO.

ALSO READ: This is what the MTI liquidators have found so far

The liquidators have scheduled a second creditors’ meeting for 10 December, in line with stipulations of the Companies Act, where a detailed progress report from the liquidators will be tabled. Since the final liquidation of MTI at the end of June, various investigations have been done where vast amounts of crucial information were obtained that will help with further discoveries.

“Regarding claims of some so-called MTI management members or heads of departments, it was clearly discovered that they received excessive remuneration packages and, since approximately October 2020, an additional Bitcoin per person per month,” the liquidators said in a statement. “It undoubtedly constitutes dispositions without value and it is doubtful that any employee can still have a claim for arrear salaries against MTI.

“As for suppliers, the evidence collected in questioning confirmed that most suppliers were paid via JNX Online.”

The liquidators are still focusing on the so-called top 200 winners, who were already identified and who collectively profited from the total amount of approximately R700 million.

They say the interrogations provided invaluable information so far. Some of the challenges the liquidators identified in recovering profits from investors will be to further verify and corroborate specific data, especially since:

• no know your client (KYC) system was in place;
• account holders are mostly not identified by name, but rather by a chosen username and e-mail address/cellphone number;
• the system did not prevent account holders from opening numerous duplicate accounts;
• several hacks were done on the database, such as the one allegedly done a few days before Steynberg disappeared.

– inao@citizen.co.za

NOW READ: R77m rescue plan for Africrypt could see Cajee brothers avoid criminal prosecution