The founders of the cryptocurrency platform Africrypt have disappeared along with $2.2 billion in Bitcoin. This isn’t the first time that a cryptocurrency exchange has gone bust – and left investors looking for answers.
Bloomberg reported that two brothers who are also founders of Africypt, a cryptocurrency investment platform headquartered in Cape Town, have disappeared together with a large amount of their clients’ holdings.
Suspicious Signs at Africrypt
The first signs of trouble came in April, when investors started to doubt the honesty of the platform.
Ameer Cajee, the chief operating officer of Africrypt, and the elder brother, announced there had been a hack to clients and requested they not to report the missing funds to authorities or lawyers.
A group of investors then hired Hanekom Attorneys to investigate after receiving the ominous notice, although it looks like it did little to prevent further harm.
According to the report, Hanekom Attorneys is currently investigating the situation. To date, the position of the Africrypt founders has been located. Investors also have notified South Africa’s priority crime investigation unit, The Hawks.
More Reasons to Be Careful
Other crypto exchanges across the world are on guard – and looking for anyone who needs to convert any large amounts of digital coins – especially by a pair of South African brothers.
While conducting the investigation, the Cape Town law firm found out that Africrypt’s pooled funds were transferred from its South African accounts and client wallets that are gone through bitcoin tumblers and mixers aiming to make them untraceable.
The cryptocurrency platform Africypt was founded in 2019 by Cajee and his brother, Raees.
The platform provided bumper returns for investors. At present, the company website has been taken down. In addition, as media reports have stated, efforts to call the founders went straight to voicemail.
Last year, the South African digital currency industry had seen the collapse of another South African Bitcoin trader, Mirror Trading International. Africrypt investors are likely to face more losses.