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- The founders of AfriCrypt deny stealing billions of dollars from customers
- Raees also denied that $3.6 billion in funds has gone missing
- Because crypto assets are currently unregulated in South Africa, the FSCA stated that it cannot take action against AfriCrypt
The founders of AfriCrypt deny stealing billions of dollars from customers, claiming they went into hiding after receiving death threats from dangerous people. Raees Cajee, the co-founder of AfriCrypt, a South African crypto investment platform, has denied claims that he and his brother stole billions in investor funds, claiming that the platform was hacked and lost $5 million. Last week, it was reported that AfriCrypt, an asset manager that launched in 2019 and claimed to offer daily returns of up to 10%, had been accused of vanishing with 69,000 BTC in investor funds in a mysterious exploit.
AfriCrypt hacked!
While AfriCrypt notified users of the hack on April 13, suspicions were immediately raised when the message advised investors to refrain from taking legal action because it would delay the recovery of funds. Shortly after, the brothers are said to have shut down AfriCrypt and vanished.
Raees attempted to refute the allegations leveled against AfriCrypt and its co-founders in an interview with The Wall Street Journal on June 28, claiming that the pair went into hiding after receiving death threats from some very, very dangerous people.
Raees also dismissed claims that $3.6 billion in funds went missing, claiming that the agency only managed $200 million at its peak in April and that only $5 million in investor funds went missing after the hack. They have been managing just over $200 million at the top of the market.
Allegations against AfriCrypt
Hanekom Attorneys, the law firm representing AfriCrypt’s clients, claims the brothers transferred $3.6 worth of BTC from AfriCrypt’s accounts and consumer wallets before moving the funds through various darkish net tumblers and mixers to prevent the funds from being traced further.
If the allegations against AfriCrypt are true, the incident would dwarf the losses from Mirror Buying and selling Worldwide, a South African Ponzi scheme that took in 23,000 BTC from unsuspecting buyers in the country’s largest confirmed crypto fraud to date. The stolen BTC would be worth $800 million at today’s prices.
Lawyer comes to the rescue of Cajee brothers
The Cajee brothers’ lawyer, John Oosthuizen, told the BBC on June 26 that the pair has categorically denied the allegations that they stole their buyers’ funds. He continued, They maintain that it was a hack, and as a result, they have been fleeced of those assets. On June 24, South Africa’s Monetary Sector Conduct Authority (FSCA) issued a statement about the case, noting that the mission appeared to have Ponzi-like characteristics by saying this entity was promising extremely high and unrealistic returns, similar to those offered by illegal funding schemes known as Ponzi schemes.
However, the FSCA stated that it is unable to take action against AfriCrypt because crypto assets are currently unregulated in South Africa. According to the Wall Street Journal, a separate group of buyers is looking for AfriCrypt’s liquidation. The brothers intend to appear in court on July 19 for a hearing on their claims.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
