AfriCrypt co-founder denies allegations of stealing investor funds

South African crypto investment platform AfriCrypt co-founder Raees Cajee denied claims that he and his brother took billions in investor funds, saying the company lost $5 million in a hack.

Last week, it was reported that the platform, launched in 2019 which offered daily returns of up to 10%, was accused of suddenly disappearing along with 69,000 bitcoin of investor funds in the wake of a mysterious exploit.

It can be recalled that last April 13, AfriCrypt notified its users of the said hack. However, suspicions started to manifest after the platform urged investors not to seek any legal actions as doing so will slow the process of funds recovery.

After that, Cajee, along with his brother took off and their whereabouts unknown. This followed the halting of AfriCrypt’s operations.

The co-founder counters

On Monday, through his speaking engagement with The Wall Street Journal, Raees countered the accusations that were made against them and their platform.

He said he and his brother went into hiding after receiving death threats from some people he described as “very dangerous.”

The AfriCrypt co-founder also moved to clarify that the platform did not lose $3.6 billion, as that is not possible for they only managed to peak at $200 million back in April this year. He added that only $5 million in investor funds are unaccounted following the supposed hack.

Raees clarified, “At the height of the market, we were managing just over $200 million.”

Not a rug-pull, but a hack

John Oosthuizen, a lawyer that represents the Cajee brothers, said the duo has categorically denied the allegations of stealing investor funds.

Speaking with BBC on June 26, the attorney said his clients maintain it was a hack and “they were fleeced of these assets.”


Image courtesy of Cointelegraph News/YouTube

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