Raees and Ameer Cajee, the two brothers who had been running the now-defunct crypto investment platform Africrypt, are said to have returned to South Africa after three years.
Currently, they are residing at the gated Zimbali Estate in KwaZulu-Natal. MyBroadband cites a Carte Blanche investigative piece, which states that the journalists were stopped by private security when they tried to get close to the property.
Gerhard Botha, a lawyer who represents an investor who has lost $50 million, believes that the founders have not been served with any legal documents; thus, he interprets this as a challenge in enforcing claims against Africrypt.
Background of the Collapse
Africrypt was a platform that operated only from 2019 to 2021 and it advertised high-yield returns of 13% per month at most through its proprietary AI-driven trading system. The platform not only accepted deposits in South African rand but also in different cryptocurrencies.
Also Read: Africa Tops Global Stablecoin Costs, Exposing High Conversion Barriers
About the Hack
On April 13, 2021, the Cajee brothers informed their users of a hack during which their funds were stolen, and only a few weeks later, they left the country, going from the Maldives to Dubai.
At first, the press thought that as much as $3.6 billion worth of assets had disappeared from Africrypt, but subsequent inquiries put the figure at around $40 million to $50 million, with the exact losses still being a matter of uncertainty.
Also Read: Tether Partners With UNODC to Strengthen Cybercrime Prevention Across Africa
Legal Proceedings
After the alleged hack, Ameer Cajee was taken into custody in Switzerland in 2021 when he was found accessing safe, deposit boxes that were thought to contain hardware wallets.
He was then granted bail. It has been difficult for South African authorities to deliver court summons to the brothers since their security and financial means keep them at a distance.
Also Read: Ripple Empowers Africa: Partners with Absa to Launch Secure, Bank-Grade Crypto Custody
