An unknown investor is ready to spend $5 million to buy a 51% stake in the bankrupt South African crypto investment company Africrypt, provided that criminal cases against its founders, Cajee brothers, are terminated. Moneyweb reported this.
Thus, according to the publication, creditors will vote for the proposal on November 12.
Africrypt suddenly stopped working in April 2021, blaming it on hacking. Raees and Amir Cajee disappeared, as well as the funds of the firm’s clients. Moreover, the media announced the amount of damage at $3.6 billion, but investors clarified that the losses are much lower.
The version of a cyber attack
Cajee denied the charges, saying that they were hiding because of threats of physical violence, according to them, irretrievable losses amounted to $5 million.
The brothers continue to insist on the version of a cyber attack on the company. But investigators are not sure about this, the newspaper notes. In May 2019, their other company was similarly “hacked”.
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.
75% to apply to the court
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.
One of the creditors, who wished to remain anonymous, called the proposal “preposterous” in a comment to the publication. ” It’s a ‘get out of jail free card’ for the Cajees. Who would invest in a business like this as if it had any credibility or chance of success, other than someone very close to the Cajee family?” he said.
However, another interested interlocutor of Moneyweb believes that creditors will accept the offer. Since the alternative is to get nothing. The initiative must win the support of 75% of the votes, after which it will apply to the court.