AFRICRYPT : SOUTH AFRICAN BITCOIN SCANDAL

The Africrypt scandal was one of the largest cryptocurrency scams in history, with estimated losses of approximately $3.6 billion. In 2021, two South African brothers, Ameer and Raees Cajee, vanished along with Bitcoin worth $3.6 billion(69,000BTC) from their cryptocurrency investment platform. Founded in 2019, Africrypt promised high returns to investors, primarily targeting high-net worth individuals and celebrities in South Africa. On April 13, 2021, Ameer Cajee announced that the company had halted operations due to a hack, claiming that their system, client accounts, and wallets had been compromised. He advised investors not to pursue legal action, stating it would only delay the recovery process. However, cybersecurity experts later suggested that the "hack" was likely an inside job. The disappearance of funds and the brothers' vanishing act sparked a massive probe by South African authorities, with the Directorate for Priority Crime Investigation leading the investigation across multiple provinces. The case drew international attention, with Swiss authorities also launching an investigation into potential money laundering charges related to the Africrypt scandal. This high-profile scam highlights vulnerabilities in cryptocurrency regulation and underscores the need for stronger oversight in the industry. In South Africa, where the scam occurred, cryptocurrencies are not considered financial products, limiting regulatory powers to investigate such cases. The scandal serves as a cautionary tale about the risks associated with cryptocurrency investments and the importance of thorough due diligence when dealing with crypto platforms.