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South African bank fraud accused denies business ties with AfriCrypt – Regulation Bitcoin News

According to local media, major South African financial institution FNB is denying allegations of banking ties with the recently collapsed crypto investment company, Africrypt. FNB also insists that it did not enable the investment company’s transaction that helped two directors of Africrypt disappear with billions of dollars in investor funds.

disappearance of investor funds

The financial institution’s denial comes nearly two months after Africrypt suddenly stopped working. At the time, the management of the crypto investment firm claimed that Africrypt’s trading system had been breached. The directors claimed that the breach compromised customer accounts, wallets and nodes, forcing Africrypt to freeze all accounts.

However, shortly after the alleged breach, Africrypt director Amir Qazi and his brother Rais Qazi are alleged to have “transferred deposits of crypto investments from their South African account(s) via bitcoin on the blockchain in April 2021.” done.” South African media reports estimate that up to $3.6 billion in investor funds may not be accounted for.

Meanwhile, in response to a media inquiry, FNB spokesperson Nadia Maharaj declined to acknowledge the existence of any connection between FNB and Africypt. according to a media report goodChef, who cited client privacy restrictions, said:

FNB once again confirms that it does not have a banking relationship with Africrypt. Due to customer confidentiality, FNB cannot provide any information about specific bank accounts.

Use of crypto mixer

An investigation by local media reveals that the Qazi brothers fled to the United Kingdom after successfully siphoning off investors’ funds. These findings are also corroborated by another investigation conducted by Honeycomb Attorneys, a law firm maintained by victims of the Africrypt fraud. In addition to these findings, the law firm’s investigation further reveals that Africrypt’s directors used Mixer in an attempt to disrupt the flow of funds.

While the matter has now been reported to the Hawks (South Africa’s elite police unit), the law firm’s founder, Darren Hannekom, is cited in the report as suggesting that Africrypt’s accounts with FNB may have already been “drained”. and may be subject to the “mixture of investors’ funds” as a whole.

What are your thoughts on this latest South African crypto investment fraud incident? Tell us what you think in the comment section below.

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