One of the alleged co-masterminds of the South African bitcoin Ponzi scheme MTI has been detained for failing to provide a satisfactory explanation for the disappearance of bitcoins from his account.
Marks’ Answers Unsatisfactory
Clynton Marks, one of the alleged masterminds of the South African bitcoin Ponzi scheme Mirror Trading International (MTI), has been detained. Marks’ detention was prompted by his failure to provide adequate answers to liquidators’ questions about bitcoins withdrawn from his MTI account.
According to a Mybroadband report, while liquidators were able to account for a portion of the funds, they could not determine how the rest were used. This prompted liquidators to seek the court’s help in establishing what happened to the funds. Under Section 417 of South Africa’s Insolvency Act, the Master of the High Court or the court itself can conduct an inquiry into the trade or dealings of a company that is being wound up and is unable to pay its debts.
Those summoned, who can be directors or people believed to possess company property, can be examined under oath or affirmation. Marks’ reported arrest on March 7 suggests his answers were deemed unsatisfactory by liquidators. However, the MTI co-mastermind insists he is providing all the information he can.
“I’m doing my best to answer all the questions. Unfortunately, my memory doesn’t serve me well trying to remember all these different transactions, and it looks like I’m not allowed to communicate with the people who operated my accounts for me,” Marks is quoted as saying.
As stated in the report, Marks delegated the task of investing and handling withdrawals to two associates, Don Nkomo and Andrew Caw.
Although the late Johann Steynberg was widely believed to be the sole mastermind of MTI, Marks and his then-wife, Cheri, were seen as his co-conspirators. As reported by Bitcoin.com News in 2021, Marks, identified as a co-owner of MTI, previously opposed attempts to liquidate the Ponzi scheme. However, the liquidation order was eventually granted, and in 2022, Marks, Steynberg and others were ordered to pay back $291 million.
However, despite Marks’ protests, South African Magistrate Petro Engelbrecht still authorized his arrest. An unnamed source in the report suggests the arrest order was issued to punish Marks for testing the magistrate’s patience.
