Creditors of the collapsed Bitcoin scheme Mirror Trading International (MTI) have filed an urgent application in the Cape High Court, seeking to restrain and ultimately remove the joint liquidators amid mounting concerns that estate assets are being depleted by prolonged legal costs and overseas litigation.
The UK-based group of MTI creditors wants the court to bar the liquidators from incurring further legal fees in the United Kingdom and to either remove them from the MTI estate or place them under tighter supervision.
The urgent application is set to be heard later this week.
REGULATION | South African MTI Liquidators Secure Legal Authority to Reclaim the Value of All Bitcoin Withdrawals from Defunct Scheme
Half of Recovered Assets Already Spent, Creditors Say
According to court filings, the liquidators have already reportedly expended roughly half of the approximately R1.1 billion in assets recovered from MTI – funds originally recovered in bitcoin before being sold — largely on UK legal proceedings. The creditors allege that continued litigation across borders risks “further expenditure of estate cash” measured in the tens to hundreds of millions of Rand over the next 12–18 months.
They argue the liquidators, who receive a 10% fee on all recoveries plus legal and administrative costs, may have an incentive to prolong litigation even where the chances of success appear limited. This, they say, is contrary to the fiduciary duties owed to the broader body of creditors.
Legal Strategy Under Scrutiny
The dispute centers on claims issued in the U.K against thousands of MTI creditors – many of whom are being pursued for bitcoin withdrawals they previously made from the scheme. Creditors argue that these claims have prescribed under South African law and should no longer be enforceable, pointing to the Prescription Act and the timing of when the liquidators obtained key transactional data.
Liquidators plan to defend their position, asserting that investigations have not yet concluded and that prescription does not begin until data validation and expert analysis are complete. The sides are expected to argue these points before the court.
LEGAL | Investors in MTI, South Africa’s Largest Bitcoin Ponzi, Resist Repayment Demands from Liquidator
MTI’s Collapse and Ongoing Fallout
MTI was once one of the largest Bitcoin-linked investment schemes in South Africa and globally, with more than 29,000 BTC funnelled through its operations on the promise of up to 10 % monthly returns — returns ultimately found to be non-existent.
South Africa’s Mirror Trading International (MTI) Was By Far 2020’s Biggest Scam Globally, Says Chainalysis 2021 Crypto Crime Report
The scheme collapsed in late 2020 after withdrawal demands outpaced available liquidity, and its founder, Johann Steynberg, fled to Brazil; he reportedly died in 2024 while awaiting extradition.
South Africa Crypto Fugitive Behind the MTI Crypto Scam Feared Dead, Buried in Brazil
The prolonged liquidation has been marked by repeated court challenges from both creditors and investors, including disputes over how recovered assets should be distributed and whether liquidators have acted in the best interests of the estate.
REGULATION | United States CFTC Concludes Case Against MTI, a South-African Bitcoin Scam, Imposes $1.7 Billion Restitution to Victims
The upcoming hearing will determine whether the Cape High Court will grant interim relief stopping the liquidators from further U.K legal action, and ultimately whether they should be removed or placed under supervision under South African insolvency law. Interested parties and legal observers are watching closely, as the case may set a precedent for how cross-border crypto insolvencies are handled in the region and on the African continent.
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