Mirror Trading International - Case Update

The liquidators of Mirror Trading International, have obtained a shelf order extending the time for them to make voidable transactions applications pursuant to s 588FE of the Corporations Act 2001.

MTI is a South African company which was placed in provisional liquidation in December 2020 and final liquidation in June 2021. The liquidation was recognised in Australia as a foreign main proceeding in October 2023.

MTI operated an illegal bitcoin Ponzi-type scheme whereby members of the public invested in a bitcoin venture promising high returns. The platform on which the bitcoin was to be managed did not exist, and returns to early investors were funded by later investment monies.

The liquidators explained that, due to the timing of their appointment and the sheer scale of the scheme (more than 300,000 investors across 234 countries), they have not been able to complete their investigations into whether there were voidable transactions with Australian recipients which are worthy of pursuing.

Defendants may include Australian “winners” of the scheme - i.e., those who actually received a return from the scheme.

Read the decision here.