South Africa is investigating the country’s most giant cryptocurrency scam after the two Africrypt founders vanished with $3.6 billion in Bitcoins belonging to the fund’s investors.
South Africa is investigating the country’s most giant cryptocurrency scam after the two Africrypt founders, Raees and Ameer Cajee, vanished with $3.6 billion in Bitcoins belonging to the fund’s investors. On April 13, Africrypt’s chief operating officer, Ameer Cajee, sent an email to investors alerting them that the investment platform had been hacked, causing them to cease operations.
The creators of Africrypto are thought to have gone to the United Kingdom.
Ameer Cajee had stated that the company was attempting to recover the funds and urged investors not to notify law enforcement as this could cause the process to be delayed. Several high-profile South Africans and celebrities are among Africrypt’s investors. According to a law company representing the victims in Cape Town, the two founders are believed to have fled to the United Kingdom with about 69,000 Bitcoins. It is easily one of the largest crypto scams globally, let alone in South Africa, due to the large sums involved.
Founders had taken money out of clients’ wallets.
The Cajee brothers, the owners of Africrypt, had enticed investors with a promise of staggering daily returns of 10%, a claim that should have prompted instant bans. According to the Cape Town law company, the brothers moved pooled cash from South African bank accounts and clients’ wallets, then split the Bitcoins into pieces and transmitted them to mixers. Previously, Mirror Trading International (MTI), a local Bitcoin trader company now in liquidation, defrauded thousands of South Africans out of around 23,000 Bitcoins.
MTI, on the other hand, has adopted a pure multi-level marketing approach, unlike Africrypt. However, both firms claimed to be trading cryptocurrency and making money using computer algorithms.