A South African Ponzi scheme has been ordered to pay R32 billion to victims in the US.MTI's CEO and founder, Johann Steynberg, is still in jail in Brazil where he fled after the scheme collapsed. A South African Ponzi scheme has been ordered to pay $1.7 billion in restitution to thousands of victims in the US.
The ruling was signed by representatives of MTI's liquidators in South Africa, who have been trying to track down thousands of missing bitcoin for the past two years. Last week's $1.7 billion penalty against MTI, which is separate from the US government's against Steynberg, brings the CFTC’s enforcement case against MTI to a close.
The bankruptcy case means there is an"automatic stay provision" it place against collecting the funds. MTI is being investigated by the Hawks, although no criminal charges have been brought. But the most pressing question facing thousands of investors – what happened to their money – remains unanswered.