I made a small investment in MTI, and wi...

Asked by PaulSC on 28-05-2024 20:04:57
Question posted in the General Law category relating to Eastern Cape

I made a small investment in MTI, and withdrew  most of it before the MTI liquidation. Allin all I made a nett loss. I recieved  summons for twice the amount of BTC I had withdrawn from MTI, and I am not in a position to pay it back. I have a small investment but it does not even cover 10% of what the liquidators want back from me.  That is money that I live off. Yet all in all, I have made a loss. I have no other means of income. What would be my options? 

Message from the Lawyer

Posted by Att. Patrick on 28-05-2024 20:24:10

Hi there and thank you for your question,

I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.

Please keep in mind that our discussions is for general information purposes only. Our engagement on this website does not create an attorney-client relationship.

What you need to do is to lodge a claim form with the MTI liquidators in respect of the value of the bitcoin that you initially invested in the pyramid scheme. 

Then, you need to file a notice of intention to defend the summons, and then make a settlement proposal with the liquidators on some amount. 

You need to be aware that if you originally invested 0.05 BTC in the scheme, and then withdrew 0.04 BTC (i.e. you made a loss) then the liquidators will want you to return that 0.04 BTC that you withdrew. 

The fact that this 0.04 BTC has increased in value over the past 2 or 3 years, is unfortunate, but they will want their 0.04 BTC back. 

You will then need to put in the claim for the 0.05 BTC that you initially invested. 

Obviously, I'm just making up some figures here, but I'm just illustrating the point. 

If the BTC/ZAR exchange rate fluctuated wildly over the period of time, the liquidators do not care about that. 

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