AfriCrypt allegedly defrauds investors of R54 billion.

AfriCrypt allegedly defrauds investors of R54 billion.

A total of 69 000 bitcoins were stolen by a South African crypto investment company. Apparently ‘hacked’ from the system. The coins equate to $3.6 billion. AfriCrypt founders, Ameer Cajee, 17, and his brother, Raees Cajee, 20, then “allegedly” transferred the pooled funds from a South African FNB account before fleeing overseas. Latest information is that they are currently in the UK.

Warning to Investors

“We regret to inform you that due to the recent breach in our system, client accounts, client wallets and nodes were all compromised,” it said.

“Unfortunately, this has forced Africrypt to halt operations… We urge all clients to please be patient as we attempt to resolve the situation. It is understandable that clients may proceed the legal route, but we ask clients to please acknowledge that this will only delay the recovery process.”

Bank Relationship

FNB risk spokesperson Nadiah Maharaj spoke to Business Report and refused to acknowledge any relationship with the AfriCrypt company.

Hanekom Attorneys are currently handling the case on behalf of certain investors and have alerts global exchanges regarding the transfer of the missing bitcoins. These transaction can be traced and not as anonymous as many believe. The key issue to bitcoin is its lack of privacy and its trace ability of its block chain when it comes the transfer and receipt of funds. There are upgrades to alleviate these gaps to a certain extent.

How the authorities deal with this recent scandal and it repercussions could alter the future of crypto currency in South Africa.

Author: Paul Williams