Business Insane World

Crypto exchange brothers disappear in South Africa with $3.6 billion worth of bitcoins

A major cryptocurrency fraud unfolded in South Africa after the disappearance of two brothers who ran a crypto investment company.

In mid April this year Cajee brothers – Ameer and Raees – informed investors that all business operations at Africrypt would be put on hold due to a massive hacking attack faced by the company which resulted in missing funds.

Investors were also told that the hack had compromised information of all their customers’ accounts and digital wallets, hence they would be frozen.

The Cajee brothers even requested their customers to not report the incident to the police as it could risk losing the stolen bitcoins worth $3.6 billion.

When things got suspicious investors filed lawsuits against the founders.

A lawyer representing Ameer and Raees denied any participation by them in the heist that involved vanishing of $3.6 billion worth of investments.

“There is no foundation to the accusation and there’s no merit to those accusations. They maintain that it was a hack, and they were fleeced of these assets,” John Oosthuizen, the lawyer of the Cajee brothers said.

On 26th of April, Gauteng South High Court granted a provisional liquidation order against Africrypt. The brothers had been given time up to June 19th to respond.

Meanwhile the brothers have vanished and haven’t been in contact since April.

The website of the company isn’t operational and the employees of the firm were laid off with salaries paid up to the month of April. The employees were told by the founders to not speak ever of the company and also asked to turn in their laptops.

John Oosthuizen lawyer of the brothers said that his contract too was terminated and so he is no longer liable to answer for them.

Funds that have been lost are difficult to track as it passed several portals on the dark web.

“Funds have been subjected to various dark web tumblers and mixers, resulting in severe fragmentation,” said Hanekom Attorneys, a South African law firm representing few of the clients.

The Financial Sector Conduct Authority has said that they cannot take any regulatory action since cryptocurrency doesn’t fall under any regulatory authority or law.