Africrypt investors accept Rand 80.7million gain from anonymous outside investor
This year, South Africa witnessed one of the biggest cryptocurrency scandals to date. Brothers Raees and Ameer Cajee, aged 18 and 21, ran a local cryptocurrency investment platform called Africrypt. Earlier this year, it was alleged that the pair disappeared with more than $ 3.6 billion (it has since turned out to be inaccurate) in crypto, including bitcoin. The company, which would have had part of SA‘The wealthiest individuals as customers have suffered what the Cajee brothers claim to be a hack into the system. The security breach saw all funds stolen, Raees Cajee and her family missing for weeks. The Bitcoin brothers broke their silence, saying they had to flee the country after receiving death threats. MyBroadband reported that the duo had purchased citizenship of the small island nation of Vanuatu, which offers citizens visa-free access to more than 100 countries, including the United Kingdom. Journalist Jan Vermeulen writes that creditors’ claims against the company should “cap between 140 million rand ($ 8.7 million) and 500 million rand ($ 31 million)”. Creditors have now negotiated a repayment of R80.7million, with an anonymous outside investor who “initially included several conditions, such as dropping criminal charges against the Cajee brothers“. Read the original article, South African Bitcoin Brothers Investors Accept R80 Million Gain, here. – Jarryd neves
South African Bitcoin Brothers Investors Accept R80 Million Gain
By Jan Vermeulen
Creditors of the collapsed Africrypt system negotiated a repayment of $ 5 million (Rand 80.7 million) with an anonymous outside investor.
Documents MyBroadband has seen indicate that the parties have negotiated a successful compromise, agreed to by both parties, which now needs to be the subject of a court order.
This is expected to happen at the end of January 2022.
Africrypt was a cryptocurrency investment program that collapsed after co-founders, brothers Ameer and Raees Cajee, informed investors that they had been hacked and their funds lost.
Investors could deposit South African Rand or cryptocurrency into the company’s accounts and earn monthly returns that are too good to be true.
An investment presentation dating from around September 2020 claimed that Africrypt had achieved returns of up to 13% per month for clients of its “Aggressive” plan.
Africrypt grabbed the headlines claiming that the Cajees fled South Africa with bitcoin worth $ 3.6 billion (Rand 58 billion).
However, it soon became apparent that this figure was woefully inaccurate.
The address of the Bitcoin wallet that the original investigators hung on as evidence that customers had deposited over 69,000 bitcoins in Africrypt as well did not belong to the regime.
The address belongs to a legitimate cryptocurrency exchange. It is not known how investigators linked the address to Africrypt, but investors in the program likely sent funds or withdrawn money to the exchange in question.
Raees Cajee said in an interview with the Wall Street Journal that less than $ 5 million was lost in the Africrypt hack.
Creditors’ claims against Africrypt are expected to peak between R 140 million (R 8.7 million) and R 500 million ($ 31 million).
The anonymous benefactor’s $ 5 million offer initially had several conditions, such as dropping the criminal charges against the Cajee brothers.
He also said Africrypt was to be pulled out of interim liquidation using $ 1 million from the offering as trading capital.
Moneyweb said the investor’s proposal suggested that it take a 51% stake in the company, with the remaining 49% distributed on a pro rata basis among investors based on what the company owed them.
The Cajee brothers were also to be rehired in the company.
The investor wants a board of directors of four to be appointed – two chosen by them, one appointed by the liquidator and one by the creditors.
A significant minority of creditors opposed the condition that the criminal charges be dropped against the Cajees.
ITWeb reported that an amended settlement offer removed the requirement for creditors to drop criminal charges and introduced certain conditions on the anonymous investor.
MyBroadband saw a letter to concerned investors suggesting that the anonymous benefactor and Africrypt’s creditors have since reached a compromise.
More details on the subject are expected this week.
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