Is South Africa Experiencing Yet Another Crypto Scam?

Is South Africa Experiencing Yet Another Crypto Scam?

Reports hold that two South African brothers, the founders of crypto investment firm Africrypt, have disappeared with Bitcoin worth $3.6 billion. Ameer and Raees Cajee are missing in action, indicating a potential scam.

In April when Bitcoin was experiencing a bull market, the Chief Operating Officer, Ameer told clients that the company was a victim of a hack. He further asked them not to report the matter to authorities or lawyers to avoid a slow recovery of the stolen funds.

According to an article on Bloomberg, several suspicious investors decided to hire Hanekom Attorneys anyway. Unfortunately, the law firm tried reaching the brothers in vain. However, they discovered that the pooled funds on Africrypt “were transferred from its South African accounts and client wallets.” Sadly, the coins went to other large pools of Bitcoin to make them untraceable.

The law firm said, “We were immediately suspicious as the announcement implored investors not to take legal action. Africrypt employees lost access to the back-end platforms seven days before the alleged hack.” Likewise, a different group also began a liquidation process against Africrypt.

Regrettably, this is not the first time that crypto investors in South Africa have been victims of scams. In 2020, crypto investors in South Africa lost their funds through a Ponzi scheme that Mirror Trading International Ltd (MTI) operated. Following this, Chainanalysis named MTI the biggest crypto scam of 2020. Many are beginning to believe that this is another in 2021.

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