The SARS wants the Western Cape High Court to admit its own nominated liquidator to oversee the winding up of failed bitcoin scheme Mirror Trading International (MTI), which collapsed in 2020 when founder and CEO Johann Steynberg fled to Brazil.

This is the latest twist in a tangled story that looks increasingly bleak for the more than 200 000 investors who pumped more than 29 000 bitcoin into the scheme, a Moneyweb report notes.

SARS has applied to be admitted as an intervening party in a case brought by one of the big winners in MTI, Clynton Marks, and one of the net losers, Henry Honiball, seeking to have the six co-liquidators removed on the grounds that they acted improperly and in bad faith in admitting the creditor claim of JNX Online, previously controlled by Steynberg.

SARS also claims the liquidators did not act diligently in respect of MTI’s tax obligations, which prejudiced MTI and its creditors.

SARS previously admitted a claim of R931m against MTI, making it the largest creditor.

Should SARS succeed in its claims, there may be nothing left for the more than 200 000 creditors.

SARS’ Hilton Hope has asked the court to admit it as an intervening party, claiming it has a direct and substantial interest in the matter and to clarify statements made by both the liquidators and applicants that implicate the tax agency.

Hope wants the court to allow SARS to appoint a co-liquidator, who would then be in a position to assess where many of the side-shows involved in the winding up – notably the section 417 and 418 inquiries in terms of the Companies Act – are in any way beneficial to creditors.

SARS is also concerned at the blizzard of court cases that bedevil the winding up process.

Full Moneyweb report