South African bank denies any business relationship with Africrypt fraud accused – Bitcoin News
According to local media, South Africa’s leading financial institution FNB denies allegations of a banking relationship with the recently collapsed crypto investment firm Africrypt. The FNB also insists it did not allow the investment firm’s trades that helped the two Africrypt directors disappear with billions of dollars in investor funds.
Disappearance of investor funds
The financial institution’s denial comes nearly two months after Africrypt abruptly ceased operations. At that time, the management of the crypto investment company claimed that Africrypt’s trading system had been violated. The breach compromised client accounts, wallets and nodes, forcing Africrypt to freeze all accounts, administrators said.
However, shortly after the alleged breach, Africrypt directors Ameer Cajee and his brother Raees Cajee reportedly “transferred the crypto investment mutual funds from his South African account (s) ( s) via bitcoin on the blockchain in April 2021 ”. South African media reports estimate that up to $ 3.6 billion in investor funds cannot be counted.
Meanwhile, in his response to a media inquiry, FNB spokesperson Nadiah Maharaj declined to acknowledge the existence of any relationship between FNB and Africypt. According to a news article, Maharaj, who cites client privacy restrictions, said:
FNB once again confirms that it does not have a banking relationship with Africrypt. Due to client confidentiality, FNB cannot provide information on specific bank accounts.
Use of cryptographic mixers
An investigation by local media suggests that after successfully siphoning funds from investors, the Cajee brothers fled to the UK. These findings are also corroborated by another investigation by Hanekom Attorneys, a law firm that was retained by the victims of the Africrypt fraud. In addition to these findings, the law firm’s investigations further reveal that Africrypt’s directors had used mixers in an attempt to scramble the flow of funds.
While the case has now been reported to the Hawks (South Africa’s elite police unit), the founder of the law firm, Darren Hanekom, is cited in the report as suggesting that the accounts of Africrypt with the FNB have already been “emptied” and that “the entirety of investor funds” may have been submitted to the mixing service.
What do you think of this latest South African crypto investment fraud event? Let us know what you think in the comments section below.
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