The South African crypto community records another loss as a Ponzi scheme made away with over 69,000 Bitcoins. The fake investment platform, Africrypt, is the brainchild of two South African brothers Ameer and Raees Cajee. This could be the biggest Bitcoin scam of all time as both brothers have absconded without any trace.
This case surfaced not long after the MTI scam which amounted to the theft of over 1,200 Bitcoins was reported. Africrypt allegedly promised investors a 10 percent return of investment daily during the period Bitcoin soared above $60k. However, red flags were raised when the 2019-established scheme told investors that the platform had been breached.
The legal team representing affected users, Hanekom Attorneys, said that the company hinted at skepticism over legal action which somehow raised questions. Furthermore, the staff of Africrypt reportedly lost access to backend servers as the co-founders locked them out. Hanekom Attorneys says it has reported the situation to a tough police team “Hawk” to handle the situation.
How Africrypt Pulled Off the Billion-Dollar Scam
Africrypt took a much more coordinated approach than Mirror Trading International, fellow South African Ponzi Scheme. Bitcoinke reported that Africrypt targeted a limited pool of wealthy individuals. These individuals were also incited to refer their friends and gain 10 percent of their investments.
Judging from the huge monetary volume the scam gathered, it is probable that Africrypt didn’t work alone. There are strong suspicions that it partnered with several cryptocurrency exchanges that shield its nefarious activities. In another instance, a South African Bank FNB is believed to be connected with the crime by offering personalized banking relations to the scheme.
The management of the bank has debunked the suspicions and declares that it is hesitating to disclose bank details due to the client’s privacy policies.