Africrypt, the South African crypto investment platform founded by two brothers, has vanished, along with $3.6 billion in Bitcoin.
Two brothers who developed the Africrypt cryptocurrency investment platform in South Africa have vanished, along with as much as 69,000 bitcoins.
A Cape Town legal firm has been unable to identify brothers Raees and Ameer Cajee, who created Africrypt in 2019, promoting it as “the quickest entrée into the world of cryptocurrencies,”.
Africrypt suspended operations in April of this year, just as the price of Bitcoin surpassed $64,000 for the first time. The company stated at the time that there had been a “breach” in its systems and advised clients not to notify authorities, stating that doing so would make it more difficult to recover the monies.
However, the Cajee brothers are accused of transferring the investors’ monies from the company’s accounts and delivering the coins through mixing services immediately after. These services, also known as tumblers, allow users to hide the origins of their cryptocurrencies by transferring them to a single pool and “mixing” them with the cash of other users.
According to local media sources, the brothers fled to the United Kingdom after allegedly cheating the platform’s investors.
Hanekom Attorneys, a law firm hired by Africrypt investors, is currently investigating the case. “Africrypt workers lost access to the back-end platforms seven days before the claimed hack,” according to the law firm.
The Hawks, a South African national police investigative squad, is aiding with the continuing inquiry. The Cajee brothers have yet to be found, and the exchange’s main website is likewise unavailable.
The alleged theft has also been reported to cryptocurrency exchanges all across the world.
Africrypt’s inquiry is still ongoing.
However, some investors believe the Cajee brothers may have fled because of “some dark frightening persons” who invested in Africrypt, and that “dodgy people” invested in Africrypt.
It’s also unclear how large Africrypt’s user base was at the time. The company had thousands of customers in South Africa, according to one investor, but the majority of the investors were from other nations.
To add to the confusion, FNB, the bank where Africrypt’s investor cash were allegedly pooled through a third-party business, has denied any affiliation with the company.