South Africa’s police are investigating a crypto-scam case in which an investment company tried to reimburse investors who had invested on the now-defunct Africrypt.
Police Take a Closer Look at Africrypt
Bloomberg reported that South African Police Forces in four provinces including Durban are investigating reports regarding the alleged Africrypt scam, which was allegedly perpetrated by brothers Raess Cajee and Ameer Cajee.
According to the coverage, Pennython Project Management LLC, a Dubai-based investment firm, approached out-of-pocket investors and tried to offer a portion.
The investors have now demanded the arrest of Ameer Cajee and Raees following Pennython’s offer.
Hawks Police Unit Lieutenant Colonel Philani Nkwalase stated that investigations are ongoing and that the police will work with multiple victims. Nkwalase said that the official loss due to the fraud is still unknown. He added that financial records are being analyzed and that the exact figure is not yet known.
Since April 2021 when 69,000 bitcoins (BTC), mysteriously vanished from Africrypt’s exchange, the Cajee brothers remain untraceable. After Ameer, Chief Operating Officer of the platform issued a statement describing the situation as a hack, suspicions rose and he advised customers not to report the incident to the authorities.
According to reports, some investors weren’t satisfied and hired Hanekom Attorneys as a law firm to investigate the matter. Hanekom discovered Africrypt employees had lost their back-end access seven day before the hack. Then, the missing funds were transferred via mixers to large BTC pools, making it harder to track down the funds.
As Crypto Adoption soars, more regulatory policies are needed
The lack of cryptocurrency regulations in South Africa could be a problem in ongoing investigations into Africrypt Saga. Brandon Topham, the head of enforcement for the country’s Finance Sector Conduct Authority was clear last year that crypto assets don’t fall under the category recognized financial products.
The FSCA announced that it would introduce a regulatory framework to provide some protection to digital asset owners in South Africa.
It’s not surprising, given that digital asset use continues to rise across Africa. Chainalysis data shows that Africa saw a 1,200% increase in crypto adoption between 2021 and 2021.
A survey conducted by Luno, a London-based company, revealed that half of Africans use cryptocurrency to fund their children’s education. This confirms that crypto is on the rise in Africa.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.