The developers of South Africa’s largest cryptocurrency exchange, Africrypt, Ameer and Raees Cajee, have disappeared, together with over $3.6 billion in Bitcoin. A law company involved by investors in Cape Town alleges that it has been unable to find the siblings and has submitted the matter to the Hawks, the nation’s top police body. The business has issued an alert to crypto exchanges throughout the world to be careful of anyone trying to sell the coins on their networks.
A Chinese firm’s Bitcoin wallet has been robbed of about 69,000 Bitcoins. If the money cannot be retrieved, it will go down in history as the biggest bitcoin loss. In the face of a rise in fraudulent accusations, the incident may force regulators to step up their efforts to bring control to the market. According to a report published in April, the 80 cyber thefts that occurred over the past decade amounted to a total loss of $2.5 billion.
The first signs of trouble emerged in April when Bitcoin reached a new high. Africrypt Chief Operating Officer Ameer Cajee, the older son, informed clients that the company had been attacked. He urged them not to tell attorneys or officials about the incident since doing so would cause the restoration of the missing cash to be delayed.
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Some critics sought the assistance of the law firm Hanekom Attorneys, while another party filed for bankruptcy against Africrypt. Hanekom Attorneys responded to emailed queries by stating they were sceptical straight away since the announcement urged investors not to sue. Africrypt staff lost access to back-end systems 7 days before the reported hack.
According to the firm’s investigation, Africrypt’s pooled assets were moved from its South African accounts and client wallets, and the tokens were transported through tumblers and mixers or to other large pools of bitcoin thus end up making them practically untraceable.
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Calls to Cajee’s cellular phone were immediately sent to voicemail. In 2019, he and his 20-year-old brother, Raees, launched Africrypt, which made a lot of profit for investors. Calls to Raees were also sent to voicemail. The company’s website is no longer accessible.
Mirror Trading International, another South African Bitcoin broker, went bankrupt last year, therefore the issue is worse. According to Chainalysis, the damages in what was termed the biggest crypto scam of 2020 were over $1.2 billion and encompassed over 23,000 digital currencies. Africrypt investors may lose thrice as much.
The reality that South Africa’s Finance Sector Conduct Authority, which normally handles such issues, is incapable of initiate a formal investigation because cryptocurrency is not legally recognised as a financial asset in the country may make retrieving the money more complicated.
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According to Brandon Topham, the agency’s head of enforcement, while South Africa’s Finance Sector Conduct Authority is examining Africrypt, the agency is now barred from initiating a formal investigation since crypto assets are not legally recognised financial goods. The police have yet to respond to a request for information.
China has lately increased cryptocurrency trading regulation following a frantic surge in Cryptocurrency and other coins over the previous six months increased long-standing Communist Party worries about the risk of fraud, trading losses, and money laundering by ordinary investors. In January, the average worth of crypto-asset trading in South Africa reached 2 billion rands (141 million dollars) for the first time, suggesting tremendous interest in a sector that had formerly been mainly unregulated.
The current situation is irregular but not as surprising, considering that authorities have frequently warned crypto investors to be wary. The brothers are currently two high profile individuals, unlike other cyber scammers, so it is more likely for them to be discovered. As for the stolen crypto assets, it may take some time for them to be recovered, if at all. Hopefully, this will be the last of these types of issues as investors don’t need additional stress to the market’s daily volatility.