Africrypt: Was this crypto business a “Ponzi Scheme” or was it really hacked?

 Africrypt: Was this crypto business a “Ponzi Scheme” or was it really hacked?

Africrypt: Was this crypto business a “Ponzi Scheme” or was it really hacked?

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Overview

Bitcoin has been one of the most lucrative cryptocurrencies which is rivalling several legal tenders where popularity and adoption are concerned. However, one of the most inherent threats associated with cryptocurrencies is that of fraudulent activities which include money laundering, amidst others.

South Africa has an impressive number of cryptocurrency traders who have invested hundreds of thousands, if not millions, not only in Bitcoin, but in several other cryptocurrencies, all in the hope of cashing in on profits which can be made in the crypto market.

However, this also means that South African traders have been exposed to several scams, one of which is the Africrypt BTC scam where 69 000 BTC, worth nearly 4 billion ZAR, has allegedly disappeared. This follows closely after the havoc wreaked by Mirror Trading International (MTI) in 2020, where 589 million USD disappeared.

What is Africrypt and what is the truth behind the allegations?

Africrypt (Pty) Ltd was founded by Ameer Cajee and Raees Cajee in 2019. Investors were promised a monthly return of between 2% and 11% on their investment with the company. Investors were offered three different levels of returns on investment namely passive, passive- aggressive, and aggressive. After the brothers had raked in millions in rand from South African investors, there was an alleged hacking on the Africrypt system in April. Following this event, Africrypt notified their investors through a letter from the CEO, Ameer Cajee, that the accounts, wallets, and nodes of investors were compromised and that due to this, Africrypt could no longer operate.

Investors were given false hope in the return of their investment, to no avail. After an investigation was launched by investors, it was found that Africrypt’s founders had transferred pooled funds from South African accounts and client wallets to larger exchanges, making the funds untraceable and making any attempts to get them back impossible. The alleged hacking of the system was therefore a smokescreen, allowing the founders of Africrypt
to make away with billions in funds.

Liezel Thorne

Liezel is a content writer with a passion for writing about the financial industry and corresponding markets. Her favorite topics include Forex, Stocks and Indices, Cryptocurrencies, and anything relating to trading technology – news, newest and latest tips, tricks, and trends. She has done extensive reviews on brokers, trading platforms (web, desktop, and mobile), and various other concepts involved with trading. As a student of Environmental management, she has a keen interest in geography, environmentalism as well as conservation of both fauna and flora.

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