Key topics
- High-ranking MTI member arrested for contempt of court over funds withdrawals.
- MTI, South Africa’s largest pyramid scheme, collapsed in 2020, losing billions.
- Arrested man claims memory loss and no funds left after luxury assets seized.
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One of the highest-ranking members in the collapsed Mirror Trading International (MTI) pyramid scheme has been arrested for contempt of court.
He was arrested on Friday, 7 March 2025 and was in the holding cells of the Cullinan Magistrate’s Court on Monday pending a hearing.
MyBroadband may not report his name as he has yet to appear. The magistrate overseeing his case will not hear the matter today.
However, we travelled to Cullinan and spoke to the man, confirming that he was being held in contempt for failing to adequately answer questions about what happened to funds he withdrew from MTI.
MTI was the biggest pyramid scheme ever operated in South Africa.
It launched in 2019 and drew in members worldwide by promising average monthly returns of 10%. It also offered ways for members to earn substantial bonuses by recruiting more people into the scheme.
Even using the most conservative estimates for the scheme’s value at the time of its collapse, at least R14.7 billion worth of bitcoin flowed through it.
This dwarfs all other South African pyramid and Ponzi-type schemes for which estimated deposits are available, including Krion, Travel Ventures International, and the Africrypt “Bitcoin Brothers”.
MTI made headlines in September 2020 when a group calling itself Anonymous ZA exploited vulnerabilities in the scheme’s poorly-coded website.
Together with a MyBroadband investigative journalist and community members, the group exposed the inner workings of MTI.
The man being held for contempt was mentioned in those leaks. They show he was in the highest echelons of the MTI pyramid scheme.
MTI’s liquidators have also said in past court papers that he featured prominently in the scheme’s leadership and was among the scheme’s top three investors.
According to their investigation, he pocketed a tidy profit before the scheme collapsed, withdrawing bitcoin worth roughly R74.9 million on the day MTI was liquidated.
“All of his so called profit and returns accrued to him within the scheme from bitcoin subsequently invested by others, and his riches resulted to the detriment of the losers,” the liquidators alleged.
They said he milked MTI until the very last moment despite knowing of the imminent collapse of the scheme.
Where is the missing money?
MyBroadband has learned that despite the vast sums the man allegedly extracted from MTI, he is now destitute.
We were reliably informed that he was living out of a car somewhere in Johannesburg after the liquidators had his houses and luxury vehicles seized.
The man corroborated that he was broke when we spoke to him in the magistrate court’s holding cells, saying he had no money left and could not afford a lawyer.
“All I can say to you, man to man, I don’t have anything,” he said.
“If I could afford a lawyer, I promise you, I would be getting totally different treatment.”
As part of a Section 417 inquiry into MTI, the liquidators demanded that the man provide details about funds withdrawn from his scheme account, as well as other transactions.
Section 417 is a part of South Africa’s Insolvency Act stipulating that the Master of the Court may convene an enquiry to obtain information about a company’s dealings when it is wound up.
While some of the funds the man withdrew from the scheme was accounted for by the purchase of property, vehicles, and other expenses, much of it was not.
When the man did not answer the liquidators’ questions to the satisfaction of the magistrate appointed as commissioner of the enquiry, he was arrested for contempt.
Among other things, he said he could not remember the details of the transactions as he was not good with numbers and had trusted third-parties to execute transactions on his behalf.
He maintained this position when we spoke to him in the holding cells.
He said that his investments and withdrawals were handled by two other men who had also appeared before the enquiry.
“I’m doing my best to answer all the questions,” he told MyBroadband.
“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.”
The man is being held at the Cullinan police station until his case can be heard later this week.
Read also:
- South Africa’s MTI Bitcoin scam leaders face jail, massive fines
- BHI Ponzi: Fears for overseas investment records as court lets Haldane travel
- Named and shamed: Mirror Trading masterminds on the hook for R4.7bn after SA’s largest Bitcoin scam
This article was first published by MyBroadband and is republished with permission.
