U.S. investigators have joined the ongoing investigation of the Mirror Trading International (MTI), the biggest cryptocurrency scam in South Africa, to assist liquidators in recovering investors’ assets.
The FBI involvement is coming few days after reports have it that the scheme’s masterminds had filed an application to stall the liquidation process. Also, it is opposing the liquidators’ attempted declaration of MTI as an illegal business.
Per a report by Bloomberg, the FBI met with the liquidators to join forces for the best interest of several U.S. and local investors involved in the scheme. After being approached by them, the liquidators “had meetings with international law enforcement agencies like the Federal Bureau of Investigation.” It added that “the FBI is joining forces with the liquidators of Mirror Trading International in the interest of several U.S. and local investors.”
The majority of the 260,000 MTI investors are believed to be based in South Africa. However, the percentage of investors residing outside the country, such as the U.S., is more significant, which explains the FBI’s interest.
Bloomberg quoted liquidators “It is not correct that having the business model of MTI declared a fraudulent and illegal scheme would allow the liquidators to seize all of the money that flowed into the scheme. Liquidators will only be entitled to recover payments made to investors which were not legally owed to them,” as a response to the claim that the declaration of MTI as an illegal business is detrimental to the interest of investors.
The liquidators explained that all funds recovered are to be reimbursed to all victims.