Africrypt founders are facing mounting pressure to come forward to authorities as investigators delve into one of the biggest cryptocurrency thefts in the country. Africrypt investors have been left in the dark and out of pocket following what the Cajee brothers claimed was a hacking incident that saw the company’s cryptocurrency holdings stolen. Founders of the South African crypto company founder went into hiding after they claimed they received death threats.
Africrypt promised lucrative returns on investments.
Cajee brothers headed up the purported investment firm, which promised lucrative returns on investments, as per its 2020 investor presentation. Clients of African could either make South African rand or Bitcoin deposits to Africrypt, which then managed those investments. Things fell apart in April 2021 after Raees Cajee informed investors through a letter that hackers had allegedly stolen an unconfirmed amount of its holdings. Later, the brothers revealed that the hackers had managed to get away with $5 million.
South Africa looks to tighten crypto regulations after increasing crypto scams.
South African regulators are tightening crypto regulations after the country witnessed two major scams in the last year. The first crypto scam was Mirror Trading International which reportedly took off with over $170 million of its customers. As reported earlier, Africrypt reportedly took off with $3.8 billion, making it one of the largest scams in the history of digital currencies. However, Africrypt’s founders denied such claims. With investors becoming a target for scammers so often, the Financial Services Conduct Authority is seeking to become more involved in the digital currency industry. Crypto regulations across countries have become more.