Raees Cajee, 21, and Ameer Cajee, 18, South African cryptocurrency traders, have been accused of orchestrating one of the largest Bitcoin scams in history. They fled the country in April, citing threats from organized crime syndicates. Their company, Africrypt, allegedly suffered a hack, wiping out all its assets, leaving investors grappling with potential losses amounting to £2.5 billion ($3.4 billion).
A Mysterious Disappearance
The Cajee brothers vanished after notifying investors of the hack, claiming their lives were endangered by “death threats” from powerful criminal organizations.
Raees Cajee, speaking from an undisclosed location, denied wrongdoing and insisted Africrypt never held assets exceeding £3.6 million ($4.7 million). Both brothers expressed their willingness to cooperate with investigations, stating they were compiling a dossier to prove their innocence.
The Vanuatu Citizenship Angle
The Guardian revealed that Raees and Ameer purchased Vanuatu citizenships through the Pacific nation’s Citizenship-by-Investment (CBI) program.
- Raees Cajee: Paid £95,000 ($121,000) for citizenship in October 2020.
- Ameer Cajee: Acquired citizenship in January 2021.
Successful applicants to Vanuatu’s CBI program can travel visa-free across the UK and EU, making it a popular choice among controversial figures.
Africrypt Collapse: A Timeline
- November 2020: Investors reported suspicious withdrawals from their Bitcoin wallets using dark web technology, rendering them untraceable.
- April 2021: Africrypt employees were locked out of internal systems a week before the alleged hack.
- Investor Warning: The Cajee brothers emailed stakeholders, asking them not to involve law enforcement, claiming it would “delay” recovery efforts.
- Liquidation: Authorities confirmed the brothers sold luxury assets, including a Lamborghini Huracan and a beachfront condo in Durban.
Lawyers Investigate
A South African law firm representing Africrypt investors discovered evidence of systematic fund transfers before the alleged breach. These transfers used untraceable methods linked to the dark web, raising suspicions about the legitimacy of the hack.
Broader Implications
The Africrypt scandal has highlighted the growing risks in the unregulated cryptocurrency sector, especially in nations with weaker regulatory frameworks.
Similar Cases:
- Vanuatu’s CBI Program: Other controversial figures, including Indian politician Vinay Mishra and Syrian official Alaa Ibrahhim, have exploited this scheme for new citizenships.
- Global Crypto Scams: Fraudulent schemes leveraging blockchain’s anonymity have proliferated, prompting calls for stricter global oversight.
Vanuatu’s Response
Floyd Mera, head of Vanuatu’s Financial Intelligence Unit, pledged to enhance background checks on CBI applicants and revoke citizenships granted to individuals with substantial criminal convictions.
“From now on, the FIU will conduct enhanced checks. If any of these persons have criminal convictions, the FIU will promptly inform the Citizenship Office,” Mera stated.
Conclusion
The Africrypt case underscores the vulnerabilities of cryptocurrency investments and the loopholes in global financial systems exploited by alleged fraudsters. As investigations continue, investors remain in limbo, with little hope of recovering their funds.
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