Two brothers in South Africa have vanished together with $3.6 billion in Bitcoin stored in their cryptocurrency financing platform.
A sign reads 'Bitcoin sold here!' at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood. (Photo is just for illustration purposes only).
Alleged Bitcoin Heist
In a recently published article in the New York Post, it was reported that Ameer and Raees Cajee launched their crypto investment platform, Africrypt, in 2019. When the Bitcoin price surged in April, they sent an email to clients or investors informing them that the firm had been hacked. However, a group of suspicious investors approached Hanekom Attorneys, a firm that specializes in all areas of the cryptocurrency business and advises high-volume traders, exchanges, and arbitrage firms.
Hanekom Attorneys said that the alleged heist was reported to the Hawks, an elite section of South Africa's national police agency. Hanekom has also informed South African financial authorities and crypto exchanges across the globe about the situation, according to a published report in a local news outlet Larenota.
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Some Result of the Investigation of the Law Firm
In a published report in Bloomberg, the firm's investigation revealed that Africrypt's pooled money was moved from its South African accounts and customers' wallets into other Bitcoin transactions to make them untraceable.
Suspicions grew after they found out also that employees of Africrypt lost access to the back-end systems seven days before the alleged breach. The law firm also said that they were instantly concerned since the statement pleaded with investors not to pursue legal action.
Meanwhile, Hanekom Attorneys said that South Africa's Finance Sector Conduct Authority is also looking into the crypto platform, but the agency said that it cannot start a formal inquiry since Bitcoin and other cryptocurrencies are not legally considered financial goods.
South African Granted Provisional Liquidation
According to ITWeb, in April, a South African court decided in favor of a group of around 20 investors, giving the brothers a temporary liquidation order. According to the site, they have until July 19 to file an appeal against the liquidation.
The chief operating officer of Africrypt, Ameer Cajee, when contacted for comment by The Post, replied via email referring to his attorney for comment. However, he did not name his attorney or give contact information.
Meanwhile, the alleged theft comes after the bankruptcy of another South African Bitcoin broker, Mirror Trading International, last year. The losses totaled about $1.2 billion in Bitcoin, with some dubbing it the greatest cryptocurrency fraud of 2020.
Some Information About the Cajje Brothers
In a published article in Jonathan Desverney USA News, the two Cajee brothers were featured on the cover of The Umhlanga Magazine in December. The article, which detailed the Cajees' success in starting their own company, seems to have been removed off the internet.
At that time, they said in a joint interview "The vision for Africrypt has always been to develop the first African cryptocurrency-focused bank, providing decentralized finance to the people who need it most, giving easy access to capital for young entrepreneurs, and stimulating growth and prosperity," according to a published article in The Umhlanga Magazine.
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