Africrypt Runs Away, Investors Lose $3.6 Billion in Punishments

If confirmed, the Africrypt case may have resulted in “the largest loss in the history of cryptocurrency scams.”

The two brothers who founded the South African cryptocurrency trading platform Africrypt disappeared completely after falsely reporting a “hack” to their customers. As a direct result of this “run” investors lost a whopping $3.6 billion in funds.

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Hanekom Attorneys, a Cape Town-based law firm hired by investors in the project, said there is no way to find the brothers, who fled with a large sum of bitcoins, Bloomberg reported. Police and financial regulator the Financial Sector Conduct Authority are also working on the case, and the law firm has reportedly notified cryptocurrency exchanges around the world that if any of them try to convert those bitcoins into fiat or alternative currencies, they should contact police immediately to track them down.

The media outlet noted that if confirmed, the Africrypt case could have resulted in “the largest loss in the history of cryptocurrency scams.” The platform, founded in 2019 by two brothers, Cajee, 20 and 21 years old, promised huge returns of up to 11 % on cryptocurrency pledges.

Alarm bells had already started ringing in April, when one of the two founders, Africrypt COO Ameer Cajee, told investors that the company had been hacked, but told them not to report the incident to police and lawyers because it could “slow down the platform recovery process.”

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But a group of investors immediately recognized the danger and contacted lawyers to draft paperwork to get their tokens back. One group of investors hired a team of Hanekom lawyers, while another group launched a liquidation bid against Africrypt.

However, the brothers appear to have planned their move long in advance. according to Hanekom, “Africrypt employees lost access to the platform’s back end seven days before the alleged hack”. Africrypt’s escrow funds were moved “from their South African accounts and customer wallets” to “large bitcoin blender pools” untraceable in order to prepare for their to prepare for their escape. The company’s two founders have since gone missing.

The Primitive Crypto founder, Hugh Wan, said on Twitter that Africrypt’s “run” reminded her of “what happened to PlusToken back in the day.

On Reddit, someone posted that the case looked like a very obvious “honeypot” scam, and on the post, a poster claimed that the brothers fled to the UK two days after informing investors of the “hack”. Reddit users also compared the case to that of Ruja Ignatova, the founder of OneCoin, the “queen of missing cryptocurrencies.” The latter is still missing after her disappearance in 2017, while the other OneCoin masterminds are now serving prison sentences.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/africrypt-runs-away-investors-lose-3-6-billion-in-punishments/
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