South African bank denies business relationship with Africrypt fraud – regulation Bitcoin News

According to local media, the leading South African financial institution FNB has denied allegations of a banking relationship with the recently collapsed crypto investment company Africrypt. The FNB also insists that it failed to facilitate the investment company’s transactions that helped the two directors of Africrypt go away with billions of dollars in investor money.

Disappearance of investor funds

The financial institution’s rejection comes almost two months after Africrypt abruptly ceased operations. At the time, the management of the crypto investment firm claimed that Africrypt’s trading system had been breached. This breach compromises customer accounts, wallets and nodes, forcing Africrypt to freeze all accounts, the directors alleged.

Shortly after the so-called violation, however, Africrypt directors Ameer Cajee and his brother Raees Cajee are said to have “transferred the pooled funds for the crypto investment from their South African accounts to the blockchain via Bitcoin in April 2021”. South African media reports estimate that up to $ 3.6 billion in investor money cannot be taken into account.

Meanwhile, in response to a media inquiry, FNB spokeswoman Nadiah Maharaj refused to acknowledge the existence of a relationship between FNB and Africypt. Referring to customer confidentiality restrictions, Maharaj said, according to a media report:

The TSO confirms again that it does not have a banking relationship with Africrypt. For reasons of customer confidentiality, the TSO cannot provide any information about certain bank accounts.

Use of crypto mixers

Research by local media suggests that the Cajee brothers fled to the UK after successfully siphoning off investors’ funds. These findings are also confirmed by another investigation by Hanekom Attorneys, a law firm hired by victims of the Africrypt scam. In addition to these findings, the law firm’s research shows that Africrypt’s directors used Mixer to disguise the flow of money.

While the case has now been reported to the Hawks (South Africa’s elite police force), the law firm’s founder, Darren Hanekom, is quoted in the report as suggesting that Africrypt’s accounts at the FNB have already been “emptied” and that “the entirety of Investor funds ”have been subjected to the mixed service.

What do you think of this recent South African crypto investment scam event? Let us know what you think in the comments section below.

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