It is alleged that the crypto bros smuggled the funds out by pooling investor cash with other Bitcoin transactions to make it untraceable.
Peirce and a cyber security specialist probed the Cajee brothers’ email addresses and company websites. And found no evidence of a hack.
“No hack took place whatsoever,” Peirce insists.
He added: “Through various addresses supplied to him, he was able to resolve a Bitcoin wallet belonging to Africrypt that had a transaction history of 75,459 Bitcoin (BTC) to the current value of $2.9billion USD.
“The Bitcoin address had various micro-transactions going out to multiple wallets.”
The Financial Sector Conduct Authority (FSCA) can not take any action because crypto assets are not regulated in South Africa. They recently said that Africrypt, “was offering exceptionally high and unrealistic returns”.
The collapse of Africrypt is another example of the lack of regulation and scrutiny over the country’s booming crypto industry. Another South Africa-based company, Mirror Trading International, collapsed in 2020. Losses are said to total over $1.2 billion.
