Africrypt owners in South Africa run away with more than $ 3.6 billions in bitcoin

A new scandal shakes South Africa due to fraud in Bitcoins.


June 24, 2021, | AtoZ MarketsThe brothers Ameer and Raees Cajee are 17 and 20 years old and they took a huge fortune equivalent to 69,000  bitcoins from their clients.  Africrypt, the South African cryptocurrency company stopped working in April.

Currently nobody knows where the owners of Africrypt are, and neither where did the money from their clients go.



How Is the Investigation Being Carried Out?

The users hired a private company called Hanekom Attorneys, and its officials discovered that it was not a hack, as initially said the company owners.

The funds were transferred from South African digital wallets and accounts, via ‘tumblers’ and’ mixers’ of the ‘dark web ‘, which caused severe fragmentation of assets, making them virtually untraceable.

Furthermore, Africrypt’s own employees reportedly lost access to the system’s backend a week before the alleged hack, without being able to access the platform’s client balances.

What Do Financial Regulators Say?

The formal investigation of the Africrypt case is made difficult by the fact that South Africa’s financial authorities lack jurisdiction in the matter, as cryptocurrencies are not recognized as financial products in the country from a legal point of view.

While South Africa’s Finance Sector Conduct Authority is also looking into Africrypt, it is currently prohibited from launching a formal investigation because crypto assets are not legally considered financial products, according to the regulator’s head of enforcement, Brandon Topham.

The police have not yet responded to a request for comments.

Meanwhile, it is believed that Ameer and Raees Cajee fled to the UK, country where Hanekom Attorneys detected a transfer linked with his business before the fall of the cryptobols.

Statistics on Fraud in the World of Cryptocurrencies

According to a report by CipherTrace, by the end of April of this year, the main cryptocurrency frauds totaled 432 million dollars.

While this figure is lower than in previous years, it’s representing a 25% increase from 2020. Just a year earlier, in 2019, those practices were basically non-existent, the report indicates.

Mr. Investor, it is very important that you always verify the company where you are sending your money.  Atoz Markets have a very complete and reliable list of the best companies of cryptocurrencies, click here to read about them.

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