Raees and Ameer Cajee - Afrikan Heroes

Africrypt Investors Push for Charges Against Cajee Brothers

January 4, 2022

A group of out-of-pocket bitcoin investors is pushing for criminal charges against a pair of South African brothers who ran a suspected fraudulent cryptocurrency platform, even after a mystery benefactor emerged to repay some of the lost cash.

A warrant for the arrest of Raees and Ameer Cajee, age 21 and 18, could be issued soon if authorities decide to go ahead with plans to prosecute, according to Sean Peirce, of Durban-based Coast to Coast Special Investigations, which is representing some of those who lost out from the Africrypt scandal. Private prosecution could also be pursued, he said.

“We are pushing for the brothers to be charged for fraud, theft and possibly money laundering,” said Peirce in an interview. “They can get 10-15 years for a first-time offence.”

We are pushing for the brothers to be charged for fraud, theft and possibly money laundering.

The brothers allegedly disappeared in April along with about US$3.6-billion of bitcoin, although a former lawyer to the brothers later disputed that sum. They had earlier informed clients that the company was the victim of a hack, while urging them not to report the incident to authorities.

“They stated that they were hacked and we have proof that they were not,” said Peirce, who represents about 35 traders. “Their intent was to defraud and to steal.”

Africrypt’s lawyer, however, said a prosecution may run into headwinds because several of the investors signed agreements to transfer their claims to a Dubai-based firm identified as Pennython Project Management, which offered some payouts to those who were burned. They no longer hold the right to any interest and therefore can’t push for civil or criminal proceedings, Rashaad Moosa said.

The Hawks, a special investigative police unit that’s looking into the matter.

While the whereabouts of the Cajees are still unknown, Pennython came forward to offer about 70% to the rand to the burned investors. It said it’s interested in the proprietary software belonging to Africrypt, though the full motivation remains murky.

A number of “investors that I represent got paid out some money”, said Peirce. “However, we are still pushing forward with the criminal case as there is still money lost.”

The Africrypt fallout has shone a light on the lack of scrutiny over the country’s burgeoning crypto industry, which has boomed in popularity since the surge in the bitcoin price a year ago. Another South African crypto company, Mirror Trading International, collapsed in 2020, with losses totalling about $1.2-billion.

South Africa’s financial regulator is planning to unveil a framework covering cryptocurrencies early this year to help protect vulnerable members of the society, it said last month.

Peirce was brought in by one of his friends who also put money in the venture to help investigate Africrypt and build a criminal case. Other investors in the Durban area joined the plan to try and get the brothers jailed.

There has been cooperation between the investigators and South African authorities, including the Hawks and the National Prosecuting Authority, said Peirce. The mystery investor has previously asked that any criminal complaints be dropped if an agreement was reached during a liquidation process, though Peirce said that’s not an option.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Liquidators of Africrypt Gets Additional Powers to Pursue Missing Funds

August 3, 2021

The high court has granted the liquidators of Africrypt additional powers to track down missing funds, and to sell assets and property belonging to the company.

It could be recalled that Africrypt is a crypto investment scheme headed by Raees and Ameer Cajee, was supposedly hacked in April 2021 and its digital wallets emptied of more than R40-billion in bitcoin. Forensic investigator Hamilton Cheong and Darren Hanekom, the attorney representing some Africrypt clients, have raised doubts as to whether it was a hack, given the fact that funds were depleted from Africrypt-controlled wallets months earlier.

Raees and Ameer Cajee, co-founders of Africrypt

The brothers fled South Africa after the alleged hack, claiming they feared for their lives after receiving death threats. Raees Cajee emerged from hiding in Tanzania last month to depose an affidavit opposing the final liquidation of the company, arguing that the alleged hack originated out of a Ukrainian IP address, and that investors had no claim against the company and “it is in the nature of investments that they can be lost”.

The company was placed in provisional liquidation on 26 April after investor group Badaspex launched a liquidation application. A statement issued last week by the liquidators’ legal representative, Ruann Kruger, says the business model of Africrypt “required investors to deposit fiat currency with Africrypt, who used the fiat currency to purchase crypto assets on a number of asset exchanges, and promised investors exorbitant returns of up to 10%/day on their investments.

“There is no evidence that this was indeed a hack of the Africrypt systems, and in support thereof it seems that funds were depleted from the Africrypt wallets four months before the alleged hack.”

Africrypt was placed in provisional liquidation on 26 April after investor group Badaspex launched a liquidation application and obtained a provisional order.

The court-appointed liquidators – Eugene Januarie and Welcome Jacobs – say directors of Africrypt intentionally failed to co-operate and are deliberately hampering the investigations into the affairs of the company. An enquiry into the whereabouts of the assets must now be held to ascertain what happened to the funds and to determine what can be recovered.

“There exists a high probability that assets and funds were moved from the business of Africrypt into the names of the directors, related companies and close corporations to the detriment of creditors, and requires urgent investigation,” says the statement.

“The so-called breach occurred on 12 April 2021, causing a loss of approximately R84-million, although an amount of R200-million had been received and invested on behalf of investors.”

This raises questions as to the status of the remaining R116-million (being the difference between the claims of R200-million received and the reported loss of about R84-million), and whether this includes gains and losses from investment, as well as withdrawals.

The liquidators also want to know why no communication has been issued by Recreate Wealth (Pty) Ltd or ReaCreate Wealth Limited, the two Hong Kong-based companies that were the legal entity that contracted with Africrypt clients.

With the liquidator’s extended powers, they will be able to investigate and interrogate the relevant parties…

“With the liquidator’s extended powers, they will be able to investigate and interrogate the relevant parties, directors and their related companies during the enquiry to uncover the mystery behind this ostensible ‘bitcoin heist’.

“The liquidator’s main objective is to track down assets, attempt to gain access to Africrypt systems and their source codes to recover bitcoin wallets and funds invested and lost by investors.

“In this endeavour, the liquidators have further secured the services of Mahier Tayob of Tayfin Forensic Investigative Auditors to conduct forensic investigations into the affairs of Africrypt and related entities.”