While cryptocurrency scams continue to plague the digital financial landscape, South African authorities have taken decisive action with the arrest of Clynton Marks, a high-ranking member of Mirror Trading International (MTI), on March 7, 2025. Marks, who was arrested for contempt of court, found himself in the Cullinan Magistrate’s Court holding cells after failing to adequately answer questions about substantial fund withdrawals from what has been labeled South Africa’s largest pyramid scheme.
MTI, which collapsed in December 2020 following CEO Johann Steynberg’s disappearance, had promised investors mouth-watering returns of 10% monthly through Bitcoin trading. The scheme, which drew participants from 140 countries, managed to accumulate between 29,421 and 46,000 bitcoins before its eventual demise. Conservative estimates place the scheme’s value at a staggering R25.9 billion, with Marks allegedly withdrawing 220 bitcoins worth R74.9 million before the collapse. Similar to the compromised Enigma platform that lost $500,000 in cryptocurrency, MTI’s collapse highlighted the vulnerabilities in digital asset investment platforms. The scheme’s membership saw a dramatic increase during the Covid-19 lockdown period, as more people sought online investment opportunities.
MTI promised astronomical monthly returns while amassing billions in Bitcoin from global investors before its dramatic collapse in 2020.
The Western Cape High Court officially declared MTI a pyramid and Ponzi-type scheme in April 2023, leading to intensified recovery efforts by liquidators. Their successes include seizing Marks’ houses and luxury vehicles, while also recovering 1,281 BTC (valued at R1.05 billion) from a Belize-based broker. The investigation has expanded internationally, with authorities collaborating with the FBI and other law enforcement agencies. The case has prompted several jurisdictions to implement cross-border enforcement measures to combat cryptocurrency fraud.
Marks, who now claims destitution and inability to afford legal representation, maintains he cannot remember transaction details and insists third parties handled investments and withdrawals. His arrest marks a significant milestone in the ongoing investigation, which has identified potential debtors with claims totaling R2.07 billion.
The MTI saga has sent shockwaves through the cryptocurrency investment community, prompting calls for stricter regulations in South Africa’s crypto market. As liquidators continue their pursuit of civil claims against directors and the National Prosecuting Authority advances its criminal investigations, the case serves as a stark reminder of the risks associated with high-yield investment programs in the cryptocurrency space.
