Liquidators of South African BTC Scam Allocate Nearly 40% of Recovered Funds to Legal Fees and Taxes

Out of the approximately $60 million (ZAR1.1 billion) that was recovered to pay back victims of the collapsed bitcoin investment platform Mirror Trading International (MTI), only $34.3 million remains. Court documents reportedly state that liquidators have used the recovered funds to pay an outstanding tax liability of $15.2 million and legal fees of $7.78 million. The legal fees include the costs associated with summoning the hundreds of MTI investors who withdrew their funds from the Ponzi scheme within a certain period. Additionally, the legal costs were incurred after the liquidators’ attorneys issued 187 letters of demand in the U.S. and 149 adversary complaints. The liquidators themselves have reportedly earned fees totalling $7.5 million for the work done so far.

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