Clynton Marks claims MTI was “a club”, wants liquidation stay
If you get caught running a multi-million dollar Ponzi scheme in South Africa, all you have to do is claim it was “a club”.
That’s the legal strategy being employed by Mirror Trading International owner Clynton Marks.
For whatever reason, South African authorities have thus far failed to hold Clynton and Cheri Marks accountable.
There was a raid on MTI’s South African offices and the Marks’ residential home last October. In December 2020 the FSCA declared MTI was illegal.
That investigation concluded in late January. Since then we’ve heard nothing further.
The Marks (right) are believed to be Mirror Trading International’s unofficial owners.
Due to inaction by authorities civil liquidation proceedings were initiated. The proceedings have been consented to by the FSCA, and seek to to recover MTI victim losses.
To that end over 1200 BTC has been recovered so far. MTI as a whole is believed to have taken in over half a billion dollars.
Based on the evidence provided by the liquidators, MTI was owned 50-50 by Steynberg and Clynton Marks, who would divvy up 10% of the profits between them every Monday.
Johann Steynberg served as MTI’s CEO. He is believed to have been in a partnership with the Marks, or puppet management they controlled.
As part of MTI’s exit-scam, Steynberg fled South Africa in December 2020. He hasn’t been seen or heard from since.
Despite recovered bitcoin being proceeds of a Ponzi scheme, Clynton Marks believes he’s entitled to keep it.
Marks is arguing for a halt of liquidation proceedings, to be heard in court next week.
As reported by Ciaran Ryan at Moneyweb, Marks’ legal argument is that Mirror Trading International “was a club”.
Legal argument will be heard next week in the Western Cape High Court as to whether MTI will be finally liquidated or whether, based on an affidavit filed by 50% shareholder in MTI Clynton Marks, the provisional liquidation order should be set aside on various grounds, including that the terms and conditions of the company make it clear that those investing in the scheme were members of a club, rather than creditors.
Another argument put forth, likely by net-winners, is that MTI
should be either placed in business rescue or allowed to reach a compromise with creditors under the Companies Act.
The provisional liquidator have responded by pointing out MTI is a Ponzi scheme. Negotiation isn’t warranted because ‘it is impossible to rescue a scheme that is unlawful’.
I’m not familiar with South African law or what legal precedent, if any, Marks is citing. Calling your Ponzi scheme “a club” and getting away with it though is laughable.
Needless to say if there is a provision in South African law that allows Marks’ farcical argument, MTI’s victims are screwed.
Meanwhile as someone who closely followed Mirror Trading International, it is supremely disappointing to see this being argued in civil court.
What on Earth are the FSCA and South African Hawks doing?
Pending the outcome of the liquidation court hearing next week, stay tuned…
“Chill Judge. MTI wasn’t a Ponzi scheme, it was just a club bro.”
“LIQUIDATION DISMISSED! Someone give this national hero ALL THE BITCOINS!”
It’d be funnier if it wasn’t a possibility.
Something (extremely important) your post is missing from the MoneyWeb article is that it is claimed that Steynberg would transfer BTC to ‘Coin Buyers Club’ to convert to local fiat and pay salaries.
However, what people should know (and is not mentioned in the original article) is that CBC is owned by Andrew Caw and Cheri (was or might still be) a director. As mentioned a billion times before…Steynberg did not orchestrate this.
What salaries? Who gives a crap about salaries?!
Throw the fuckers in jail, seize it all, establish a claims process, pay the victims.
Distribution might take years but it’s not rocket science. There is no need for this “muh Ponzi scheme was a club” liquidation circus.
Might be missing the point there OZ.
The point was that when you trace every little thread of how funds were moved around, Steynberg is not the key player
Wasn’t that obvious from day one? It’s always been a question of how much involvement he had.
MTI is just BTC Global Team rebooted, run by Marks and made possible by the Hawks’ inaction.
Think T just wants somebody to dig deeper and pull Andrew or more in here.
I also noted the CBC link,and of course Oz has discussed Andrew in the past as well for his part in BTC Global’s activities.
Andrew was also poised to become Steynberg’s 2nd in charge and is Cheri’s GOTO guy for his “Bitcoin” expertise, he was going to be mentioned in the 1st revision of the disasterous December statement Cheri doctored up too (this was visible in the December Zoom call video if you look carefully at the Word Doc), as the one to take over the “Servers” from the India webhost as well as the expert to help take over and check up on Trade300.
The final released version had this info removed.
Mybroadband also tugged a bit at the links here
mybroadband.co.za/news/cryptocurrency/381200-striking-similarities-between-mirror-trading-international-and-btc-global.html
Some bets are that the original plan had Steynberg be the fall guy but at a later stage, and him double-crossing Cheri’s scam plan for his own exit, thus the frenetic damage control and self-destruction.
MTI also clearly under-reported “income” and “profits” to the CIPC if salaries were as high as indicated, since their declaration was the lowest bracket possible.
If they should win against the liquidator maybe we can then bring a class action lawsuit against the Marks for our full refund?
If “it’s just a club bro!” works in liquidation proceedings, surely it’d work against a class-action too no?
Also you’re not getting a “full refund” either way, that’s not how Ponzi math works.
Actually, the reason they are fighting so hard is both the other options are no-liability where no payouts from the scam has to be returned by high-earners or management except Steynberg’s.
Thats why every nugget supporting Business Rescue or alternatives are a fucking imbecile (Yes Recovery Action Wanks, that’s you).
Your best bet is liquidation and it being declared an illegal pyramid scheme, which means if you made more than you paid in – you’re liable.