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South African police investigate Africrypt

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Law enforcement officers of South Africa have launched an investigation into a number of criminal cases initiated at the request of investors of the bankrupt cryptocurrency platform Africrypt. Bloomberg reported this.

Thus, the plaintiffs are seeking fraud charges and the arrest of the founders of Africrypt, brothers Ameer and Raees Cajee.

Furthermore, the police are investigating the circumstances of the incident.

The brothers were hiding because of death threats

In April 2021, Africrypt stopped working, blaming it on hacking. Ameer and Raees Cajee disappeared. As did the money of the firm’s clients. Initially, the media reported that user funds in the company’s funds amounted to $3.6 billion.

Moreover, the law firm Hanekom Attorneys, hired to investigate the victims of the Africrypt bankruptcy; claimed that the brothers used mixing services to conceal traces of fraud.

The founders of the platform rejected the accusations and stated that the amount managed by Africrypt was significantly lower. According to Raees Cajee, it was just over $200 million. He also claimed that the brothers were hiding because of death threats.

An unknown South African investor proposed $5M

Recall that in November, an unknown South African investor proposed $5 million to save Africrypt.

In addition, the compromise proposal submitted to the creditors of Africrypt provides for the payment of $4 million to repay their claims. It is believed that they amount to about $13.1 million. The investor will contribute another $1 million as capital to continue the business. Consequently, for the invested $5 million, he will receive a 51% stake in the company. The rest will be divided among creditors in proportion to the amounts of their claims.

The unnamed investor offers not only to drop all criminal charges against the brothers but to make them company managers again. Another condition is the inclusion in the board of directors of one of the liquidators, Eugene Januarie, along with his own representative.

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