Liquidators overseeing the collapse of Mirror Trading International have begun issuing summons to the scheme's most successful participants. These legal demands seek the return of profits withdrawn before the cryptocurrency Ponzi scheme imploded, aiming to recoup losses for thousands of defrauded investors.
The legal notices function as debt collection actions under South African law. Recipients must decide whether to repay their earnings or challenge the claims in court. Liquidators are acting with urgency, citing the statutory three-year window for such recovery actions. Some summons were reportedly dispatched prior to formal court approval due to time constraints.
As of late January, 8,550 individuals had lodged victim claims against MTI. Liquidators have processed 7,268 of these claims. However, actual payouts to victims remain pending. Funds are held until the liquidators finalize their second distribution account and submit it to the Master of the Court. Dividends can only be distributed if there are no objections. A precise timeline for this process was not available before the end of February.
A significant focus of the liquidators' efforts is on Clynton and Cheri Marks, identified as the scheme's largest net-winners by a considerable margin. Their extracted profits far exceed those of other participants. Both are also suspected of operating MTI in conjunction with CEO Johann Steynberg. It is currently unknown if they have received summons.
Clynton Marks continues to reside openly in South Africa. Cheri Marks, also known as Cheri Ward, deactivated her public Facebook profile sometime after August 2023, coinciding with increasing scrutiny of MTI's operations. She is also believed to be living openly in South Africa. Despite MTI being recognized as one of South Africa's largest Ponzi schemes, no prosecutions have been brought against the Marks individuals by authorities.
The liquidators are also pursuing international avenues to locate individuals who may have fled with investor funds. In December 2023, bankruptcy recognition was secured in the United Kingdom, following similar actions in the United States, Canada, Belgium, and Australia. These cross-border rulings empower liquidators to pursue net-winners internationally. To date, summons have been exclusively issued to individuals within South Africa.