Investors in the Dundee-based Coinit Trading ‘pyramid scheme’ are hoping to get some of their money back, reports TimesLIVE.

This was after Coinit director Malcolm Henry de Beer lost a bid to appeal against a court order authorising the disposal of Coinit’s assets for the benefit of investors.

The liquidators of the scheme said they have the green light to proceed with the sale of certain assets, after the KZN High Court (Pietermaritzburg) dismissed an application for leave to appeal a forfeiture order granted last year, as well as an application for the court to condone the late filing of the appeal application.

Coinit was shut down under the provisions of the Financial Advisory and Intermediary Services Act after it was deemed to have been unlawfully taking investments from members of the public.

The company allegedly took money from ‘investors’ to buy construction and plant and hire vehicles.

Those who participated in the scheme were promised they would be paid monthly rentals from the lease of the vehicles.

The liquidators have found no evidence Coinit ever acquired such equipment or vehicles.

Coinit began to run out of funds to pay investors during June 2019, resulting in a liquidation application brought by some investors.

At the time of its provisional liquidation in 2020, it was estimated it had taken R4bn in investments but later the liquidator revised the figure to R2bn.

Last year the Asset Forfeiture Unit made several successful applications in the High Court, obtaining preservation orders over assets, including land, five aircraft and motor vehicles, said to be worth about R48.9m.

Full TimesLIVE report