{"id":45066,"date":"2021-06-28T11:15:29","date_gmt":"2021-06-28T08:15:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45066"},"modified":"2025-08-31T19:56:28","modified_gmt":"2025-08-31T16:56:28","slug":"africrypt-founders-deny-3-6bn-fraud-allegations","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/africrypt-founders-deny-3-6bn-fraud-allegations\/","title":{"rendered":"Africrypt founders deny $3.6bn fraud allegations"},"content":{"rendered":"<p>The founders of the now-bankrupt crypto investment firm Africrypt, Amir and Raees Kaagee, \u201ccategorically rejected\u201d allegations of deceiving clients. They attributed the collapse to a hacker attack, according to the <a href=\\\"https:\/\/www.bbc.com\/news\/technology-57582805\\\">BBC<\/a>.<\/p>\n<p>Representing the brothers, lawyer John Oosthuizen said that his clients did not file a police report after the incident. They reportedly received threats of physical violence and decided to safeguard themselves and their families, the lawyer added.<\/p>\n<p>He said the brothers were willing to cooperate with the investigation after receiving the appropriate notice, but did not disclose their whereabouts. Oosthuizen called the accusations against Africrypt&#8217;s leadership unfounded.<\/p>\n<p>In April, the firm abruptly ceased operations, citing a breach of its trading system. According to its representatives, the cyberattack affected clients&#8217; accounts, wallets and nodes.<\/p>\n<p>According to media reports, user funds in the company&#8217;s funds stood at <a href=\"https:\/\/u1f987.com\/en\/news\/south-african-bank-denies-link-to-3-6-billion-cryptocurrency-fraud\">$3.6 billion<\/a>. After the alleged breach, Amir and Raees Kaagee moved Bitcoin investments to their own wallets, journalists claimed.<\/p>\n<p>An anonymous investor interviewed by the BBC said that the losses were much lower than the announced amount. The broadcaster also cited an archive of Africrypt&#8217;s website, where the firm&#8217;s <span data-descr=\\\"assets under management\\\" class=\\\"old_tooltip\\\">AUM<\/span> was listed at $100 million as of January 2021.<\/p>\n<p>Earlier, a South African intergovernmental working group proposed tightening regulation of the country&#8217;s cryptocurrency industry.<\/p>\n<p>Subscribe to ForkLog news on <a href=\\\"https:\/\/www.facebook.com\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The founders of the now-bankrupt crypto investment firm Africrypt, Amir and Raees Kaagee, \u201ccategorically rejected\u201d allegations of deceiving clients. They attributed the collapse to a hacker attack, according to the BBC.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1154,1839],"class_list":["post-45066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crimes","tag-south-africa"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=45066"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45066\/revisions"}],"predecessor-version":[{"id":45067,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45066\/revisions\/45067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=45066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=45066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=45066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}