Brothers from South Africa disappeared along with $3.6 billion worth of bitcoins. A Cape Town-based law firm hired by investors said it could not find the brothers and reported it to the Hawks, an elite unit of the national police.
The disappearance of about 69,000 bitcoin in value could be the biggest dollar loss in the history of cryptocurrency scams. The incident could spur regulatory efforts to restore order to the market amid increased incidence of fraud.
In April, as Bitcoin skyrocketed to record highs, Africrypt’s COO Amir Kaji, an older brother, told clients that the company had been the victim of a hack. He asked them not to report the incident to lawyers and authorities, as this would slow down the process of recovering funds. Some skeptical investors contacted the law firm Hanekom Attorneys, which immediately suspected Africrypt of fraud.
We are suspicious because the announcement calls on investors not to take legal action. ” Africrypt employees lost access to server platforms seven days before the alleged hack.
The investigation revealed that Africrypt’s funds were transferred from its South African accounts and client wallets, with the coins going through channels that were nearly impossible to trace.
At the moment, the location of the brothers is unknown.