​​MTI Co-Mastermind Clynton Marks Arrested Over Missing Bitcoin Funds

Clynton Marks, one of the alleged masterminds behind South Africa’s infamous Bitcoin Ponzi scheme, Mirror Trading International (MTI), has been arrested for failing to provide satisfactory answers regarding missing Bitcoin funds. His detention follows an extensive investigation by liquidators attempting to trace the assets of the now-defunct scam, which left investors with massive losses.

Unanswered Questions Lead to Arrest

Marks’ arrest was reportedly prompted by his inability to account for significant Bitcoin withdrawals from his MTI account. According to a report from MyBroadband, liquidators were able to track some of the missing funds but could not determine how the rest were used. As a result, they sought legal intervention to compel Marks to provide answers.

Under Section 417 of South Africa’s Insolvency Act, courts are empowered to investigate the dealings of a company that is being wound up due to insolvency. During such inquiries, individuals suspected of having crucial financial information—such as company directors or individuals in possession of company assets—can be questioned under oath. Marks’ failure to provide satisfactory responses reportedly led to his detention on March 7, suggesting that authorities believed he was withholding vital information.

Marks’ Defense: A Failing Memory and Delegated Responsibilities

Marks has maintained his innocence, stating that he is doing his best to answer all the questions posed by liquidators. However, he claims that his memory is failing him regarding the details of past transactions. Additionally, he asserts that he was not directly involved in handling the investments and withdrawals from his MTI account, instead entrusting these responsibilities to two associates, Don Nkomo and Andrew Caw.

Despite his claims, legal authorities remain skeptical, as Marks was previously identified as a co-owner of MTI. His former wife, Cheri Marks, was also believed to be deeply involved in the scheme, alongside the late Johann Steynberg, who was widely regarded as the primary mastermind.

MTI’s Fraudulent History and Legal Consequences

Mirror Trading International, once marketed as an innovative Bitcoin investment platform, collapsed in 2020 after revelations that it was operating as a multi-level marketing scam. South African regulators labeled it the country’s largest Ponzi scheme, with thousands of investors losing funds. In 2022, Marks, Steynberg, and other key figures were ordered to repay $291 million to liquidators as part of the legal proceedings against them.

Despite Marks’ opposition to the liquidation efforts, a South African court ultimately granted the order, paving the way for a thorough asset recovery process. His recent arrest suggests that authorities believe he may still be withholding crucial information regarding the missing Bitcoin funds.

Court’s Patience Runs Thin

South African Magistrate Petro Engelbrecht authorized Marks’ arrest, reportedly due to frustration with his responses during the inquiry. According to an unnamed source cited in the report, the magistrate’s decision was influenced by Marks’ repeated failure to provide clear and direct answers, leading to suspicions that he was intentionally stalling the investigation.

Marks’ arrest adds another layer to the ongoing legal battles surrounding MTI and its former leadership. As authorities continue to track the missing funds, the case serves as a stark reminder of the risks associated with unregulated investment schemes and the severe consequences for those involved in financial fraud.

The post ​​MTI Co-Mastermind Clynton Marks Arrested Over Missing Bitcoin Funds appeared first on Coinfomania.