Mirror Trading International liquidators have given victims a recovery deal.

The deal, which appears to have received court approval, will see victims who accept paid “a portion of their claims”.

While the court has approved the deal, it remains contingent on Mirror Trading International being declared an illegal scheme.

That hearing was supposed to begin on March 2nd. It’s now been postponed to April 29th.

As reported by Jan Vermeulen of MyBroadband, MTI victims who take liquidators up on their deal

must withdraw their opposition to the liquidators’ application to have the court declare Mirror Trading International (MTI) an unlawful scheme.

This is obviously an attempt to fast track a legal ruling on MTI’s legal status. As I understand it, some MTI victims have objected to MTI being declared an illegal scheme, believing this will rule out recovery distribution.

What I’m unclear on is whether these victim’s claims will take precedence over other victims.

What we do know is, as part of the deal, victim claims will be processed before net-winners.

Liquidators for the failed Bitcoin scheme Mirror Trading International (MTI) this week agreed to ring-fence and process the claims of net losers ahead of the net winners.

I don’t know why MTI net-winners are being allowed to file claims to begin with, but I’ve long given up trying to understand South Africa’s liquidation laws.

Suggesting liquidators are looking to show the court victims don’t oppose declaring MTI an illegal scheme,

victims who have not opposed the application to declare MTI a pyramid scheme can also take up the deal.

MTI’s net-winners (i.e. anyone  who withdrew more than they personally invested), are barred from accepting the deal.

As previously stated, distribution payments under the deal are tied up until MTI is declared an illegal scheme.

News24 reports;

While the liquidators said they were ready to argue the case, presiding Judge Alma de Wet said she could not be expected to review a flood of late court filings in time.

De Wet said it had been “raining papers,” some of which were hundreds of pages long.

Whether the filings were from lawyers representing MTI scammers, victims or both is unclear.

In a statement issued after the case was postponed, the MTI liquidators said there had “no doubt” that the late filings were meant to place the court in an “impossible position”.

The above statement suggests the filings are from MTI’s net-winners.

As primary beneficiaries of the Mirror Trading International, the Marks family and friends stand to lose the most if MTI is ruled illegal.