Cryptocurrency scams don’t seem to stop. While some companies are taking a small amount of investments from investors, Africypt is different as it scammed around $3.6 billion from its investors, and the founders ran with the money. As of this writing, the founders, Ameer and Raees Cajee, known to be brothers, are nowhere to be found. Some investors hired lawyers and firms to help locate the founders but to no avail. The investigation couldn’t be initiated because of the disappearance.
In April, the brothers announced that the company was a victim of a hack. There was an alleged transfer of pooled funds from the clients’ wallet and local accounts to tumblers and mixers. These wallets are the original storage of the funds. When the money was transferred, it became difficult to trace back the money. Tumblers and mixers are usually used to make crypto transactions untraceable. And although not impossible to trace, it becomes difficult to locate the coins when the transfer is completed.
What makes the situation worse is that the South African Finance Sector Conduct Authority couldn’t help with the investigation for the mere fact that cryptos are not considered a legal, financial product in the country. This will be the largest crypto scam of history if the money will not be recovered, surpassing the $200 million CAD lost when QuadrigaCX’s founder died while exploring India.