Streaming issues? Report here
money-show-thumbnailjpg money-show-thumbnailjpg
The Money Show with Bruce Whitfield
18:00 - 20:00
volume_up
volume_mute

Up Next: The Aubrey Masango Show
See full line-up
The Money Show with Bruce Whitfield
18:00 - 20:00
Home
arrow_forward
Business
fiber_manual_record
World
fiber_manual_record
Local

SA brothers vanish after reportedly fleecing investors of R54b in Bitcoin

24 June 2021 6:54 PM
Tags:
Money laundering
The Money Show
Bruce Whitfield
bitcoin
cryptocurrency
Bitcoin heist
Financial Sector Conduct Authority
FSCA
crypto
Brandon Topham
Africrypt
Raees Cajee
Ameer Cajee
crypto scam
MTI
Darren Hanekom
Hanekom Attorneys

The Money Show interviews attorney Darren Hanekom and the FSCA's Brandon Topham about the alleged Africrypt crypto heist.

South African investors are extremely worried after a crypto disappearing act reportedly perpetrated by local platform Africrypt.

The company was formed in 2019 by the Cajee brothers, Ameer and Raees.

Moneyweb cites an analysis by Hanekom Attorneys which shows that around R54 billion ($3.6 billion) was swiped out of multiple wallets controlled by directors of the company "in a matter of hours".

The alleged Africrypt scam would be one of the biggest crypto heists the world has yet seen.

© Wit Olszewski/123rf.com

Hanekom Attorneys is representing a consortium of people who invested in what they thought was a bona fide crypto currency platform.

Bruce Whitfield gets the lowdown from company founder Darren Hanekom.

The platform was marketed as a way to connect banks, payment providers and digital asset exchanges with a view of making transfers seamless.

Darren Hanekom, Founder - Hanekom Attorneys

This is a smaller consortium of people... so the investment pool is a lot larger... per person at least R1 million.

Darren Hanekom, Founder - Hanekom Attorneys

Payments and deposits were made largely with a view of having returns in excess of 10% received per month.

Darren Hanekom, Founder - Hanekom Attorneys

In this case it's not just Bitcoin - the innovation in technology also allows swaps to occur from Bitcoin to Etherium, from Etherium to others...

Darren Hanekom, Founder - Hanekom Attorneys

The beautiful thing about blockchain is that it doesn't disappear, it's just in another place and no longer in the control of our clients.

Darren Hanekom, Founder - Hanekom Attorneys

The Financial Sector Conduct Authority (FSCA) has released a statement saying it is continuing to investigate related complaints.

RELATED: Don't fall for promises of high returns from latest investment scam, warns FSCA

The Authority says it needs to establish whether a financial product or service was offered to the public, which would have required Africrypt to be registered.

At this stage the FSCA has discovered only evidence of crypto asset transactions, which it cannot act on because crypto assets are currently not regulated in South Africa.

Bruce Whitfield interviews Brandon Topham, the FSCA's Divisional Executive for Investigations and Enforcement.

We've been trying to find the basis on which we could get involved. Fortunately, the case was put into provisional liquidation into the other day, so it took a bit of the urgency away.

Brandon Topham, Divisional Executive: Investigations and Enforcement - FSCA

We've found... that there were contacts with a company in Hong Kong.

Brandon Topham, Divisional Executive: Investigations and Enforcement - FSCA

Based on the returns that were promised... I'm confident it must have been a Ponzi because no legitimate operation would give you that type of return.

Brandon Topham, Divisional Executive: Investigations and Enforcement - FSCA

As you know we are working on making it [crypto assets] a financial product to get some regulation...

Brandon Topham, Divisional Executive: Investigations and Enforcement - FSCA

For more detail on the investigation into Africrypt, listen to the interviews below:




24 June 2021 6:54 PM
Tags:
Money laundering
The Money Show
Bruce Whitfield
bitcoin
cryptocurrency
Bitcoin heist
Financial Sector Conduct Authority
FSCA
crypto
Brandon Topham
Africrypt
Raees Cajee
Ameer Cajee
crypto scam
MTI
Darren Hanekom
Hanekom Attorneys

More from Business

More from World

More from Local