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A Cape Town law firm is appealing to potential creditors to come forward as it launches an application for the liquidation of the bitcoin investment scheme, Mirror Trading International.
Luitingh and Associates said that the appeal comes at a time when two high court applications for the liquidation of MTI were filed by investors unable to withdraw funds.
The Financial Sector Conduct Authority has already filed criminal charges against the company after alarm bells began ringing in August.
The law firm said that the FSCA investigation revealed the company used fake trade statements, undeclared losses, and possible fraud involving thousands of bitcoins.
“We need to be fully aware of all claims against MTI to adequately assist the public to recoup their investments,” said Anyuschka Nett, an attorney at Luitingh and Associates.
She said despite FSCA warnings, the number of MTI members has grown to an estimated 280 000, which means the loss is potentially a massive blow to many people.
Nett said that while this is not a first or last of its kind in South Africa, at an estimated R8bn loss, it does appear to be one of the largest to have occurred.
She said they want to appoint liquidators as a matter of urgency.
"We need to work fast to recover assets in a swift and competent manner and would like to avoid a lengthy and protracted liquidation process.”
