While South Africa’s authorities continue to do nothing, civil Mirror Trading International liquidation proceedings continue.

The latest is a ten-page
provisional
order, defining actual victims from the scheme against net-winners.

As per the High Court’s August 31st order, MTI’s liquidators have been instructed to treat bitcoin invested into the Ponzi scheme as “property”.

Pursuant to that, liquidators will then group MTI investors as follows:

Class 1 Investors – victims who invested and didn’t receive
anything
from MTI

Class 2 Investors – victims who invested, received some money back but are still net-losers

Class 3 Investors – scumbags who stole money through MTI

Class 1 and Class 2 Investors who intend to file a claim will have to do so in South African Rand, calculated at the time of investment.

Note that claims for monopoly money backoffice amounts are disallowed. Class 1 and 2 Investors can claim what they actually invested, that’s it.

The court approved liquidators going after Class 3 Investors as per the Insolvency Act. This seems to be contingent on Class 3 Investors filing claims, and I’m unsure on why this would happen.

Being a provisional order, the High Court has yet to approve any of this going forward.

Anyone upset by the order (Clynton and Cheri Marks etc.), has until October 31st to whinge to the court. Once those objections have been dealt with, presumably the court will make the order final.

Still not clear on what the end-game for MTI liquidation proceedings is. Back in July South Africa’s Revenue Service made it known they intend to
seize more than has thus far been recovered
.

Until someone makes a move against the Marks crime family and other MTI insiders, sorting investors into victim groups doesn’t count for much.

🤖 Quick Answer

What did South Africa's High Court provisionally approve regarding MTI investors?
The High Court issued a ten-page provisional order categorizing Mirror Trading International investors into three classes: Class 1 (victims receiving nothing), Class 2 (net-losers who received partial returns), and Class 3 (net-winners). Bitcoin investments are treated as property, and liquidators will process claims accordingly in South African Rand.

How are MTI investors classified in the liquidation proceedings?
The High Court established three investor categories: Class 1 encompasses those who invested without receiving returns; Class 2 includes investors who received partial reimbursements but remain net-losers; Class 3 comprises net-winners from the scheme. Each classification determines claim eligibility and recovery distribution procedures.

What financial asset treatment did the High Court establish for the MTI case?
Pursuant to the August 31st High Court order

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