MTI Co-Mastermind Clynton Mark has been arrested for unanswered questions

One of the allegations of the co-master of the South African Bitcoin Ponzi scheme MTI is being detained for failing to provide a satisfactory explanation of the disappearance of Bitcoin from his account.

Marks’ answer is insufficient

Clynton Marks, one of the masterminds of South Africa’s Bitcoin Ponge Scheme Mirror Trading International (MTI), is in custody. Marks’ detention was prompted by his failure to provide appropriate answers to liquidator questions regarding Bitcoin withdrawn from his MTI account.

According to a report from MyBroadband, the liquidator was able to explain some of the funds, but was unable to determine how the rest was used. This led liquidators to seek court help in establishing what happened to the funds. Under Section 417 of the South African Bankruptcy Code, the High Court or the court itself may conduct an investigation into the trade or transaction of a company that has been repealed and is unable to pay its obligations.

The summoned people may be people who are believed to own the property of the superintendent or company and can be looked up under oath or affirmation. Marks’ reported arrest on March 7 suggests that his answer was deemed inadequate by the liquidator. However, MTI’s joint mastermind claims to provide as much information as possible.

“I try my best to answer all the questions. Unfortunately, my memory doesn’t help me try to remember all these different transactions. It appears that I am not allowed to communicate with the people who run my account,” Marks is quoted as saying.

As stated in the report, Marks delegated the task of investing and handling withdrawals to two peers, Don Nkomo and Andrew Caw.

The late Johann Steinberg was widely believed to be the sole mastermind of MTI, but Marks and his then wife, Cheri, were considered his conspirators. As reported by Bitcoin.com News in 2021, Marks, identified as the co-owner of MTI, previously opposed attempts to liquidate the Ponzi scheme. However, the liquidation order was ultimately granted, and in 2022 Marks, Steinberg and others were ordered to repay $291 million.

However, despite Marks’ protests, South African Magistrate Petro Engelbrecht still approved his arrest. Sources without names in the report suggest that an arrest order has been issued to punish Mark to test the magistrate’s patience.