The return of the so-called ‘Bitcoin Brothers,’ Raees and Ameer Cajee, to South Africa has reignited the controversy surrounding the collapse of their crypto investment platform, Africrypt. According to a recent investigation by the TV program ‘Carte Blanche,’ the brothers are now residing in the upscale Zimbali Estate in KwaZulu-Natal, protected by tight security measures.
The Return of the Bitcoin Brothers
The Carte Blanche team attempted to approach the brothers’ property but was blocked by private security. Additional attempts to locate the Cajees at holiday locations in Umhlanga and a recent address in Johannesburg also failed to yield direct contact. Gerhard Botha, a lawyer representing an investor who claims to have lost about $50 million, highlighted the difficulty in serving legal papers due to the brothers’ security arrangements. ‘They can protect themselves. They’ve got security. Because they have money,’ Botha told the program.
The Rise and Fall of Africrypt
Africrypt operated from 2019 to 2021, promising investors returns of up to 13% per month through a purportedly advanced trading system. The platform accepted deposits in both South African rand and cryptocurrency, attracting a significant number of investors. However, the facade crumbled on April 13, 2021, when the founders informed users that the platform had been hacked and its holdings stolen. The brothers subsequently fled South Africa, initially traveling through the Maldives and eventually settling in Dubai.
The Scale of the Scandal
Early reports suggested that losses could be as high as $3.6 billion, but subsequent investigations narrowed the figure to between $40 million and $50 million. The exact amount of investor losses remains uncertain, with some fund managers claiming their losses would be worth $50 million today. The case garnered international attention as the brothers moved across multiple jurisdictions, including Tanzania and the United Arab Emirates. Ameer Cajee was briefly arrested in Switzerland in 2021 while visiting safe-deposit boxes believed to contain hardware wallets holding cryptocurrency, but he was later released on bail.
South Africa’s Crypto Landscape
The Africrypt scandal has cast a long shadow over South Africa’s burgeoning crypto sector. In its latest Financial Stability Report, the South African Reserve Bank identified digital assets and stablecoins as emerging risks to the financial system. The report noted that the number of users on the country’s three largest crypto exchanges reached 7.8 million by July, with about $1.5 billion held in custody at the end of 2024. The bank warned that the borderless nature of crypto could allow funds to bypass exchange-control rules, further complicating regulatory efforts.
As the crypto landscape in South Africa continues to evolve, the return of the Bitcoin Brothers serves as a stark reminder of the need for robust regulatory frameworks and investor protection. The case underscores the importance of due diligence and transparency in the crypto industry, particularly in a region where digital assets are increasingly becoming a significant part of the financial ecosystem.
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