JOHANNESBURG – Raees Cajee has emerged from ‘hiding’ – in Tanzania – to oppose the final liquidation of Bitcoin investment company Africrypt. The company’s infrastructure was allegedly hacked and emptied of crypto reportedly worth R54 billion, in what has been described as “the biggest crypto heist in history”.
In his affidavit before the South Gauteng High Court, Cajee said nothing like R54 billion was hacked. It was closer to $6 million (R88.5 million) and hackers from a Ukraine internet address succeeded in making off with all the company’s crypto.
CEO of Momentum Integrated Solution, Talha Bakharia, discussed the effects of blockchain scams on the South African industry with Salaamedia’s Julie Allie on News & Views.
“When it comes to businesses like this, you have to have a lot of trust between you, as a trader, and an investor,” said Bakharia.
Raees Cajee is opposing the final liquidation, arguing that Badaspex – an Africrypt investor that claims R67 million is owed to their clients – had signed an agreement with RaeCreateWealth (RCW) in Hong Kong, and not with Africrypt, and therefore Badaspex had no contractual agreement with Africrypt.
“The Respondent [Africrypt] is not indebted to the Applicant [Badaspex] as it contends or in any other amount whatsoever,” deposed Cajee.
Bakharia said “they have incorporated a Hong Kong company so when you get onto these platforms with which clients are given a electronic based agreement that states that you as a client cede your rights to the these companies [in Hong Kong] so then the South African company is not held liable”.
Bakharia added: “A hack is possible and I assume that they knew it was going to happen but they just failed to put the infrastructure in place to protect them from such a threat.”
According to the Cajee brothers, their family had to flee South Africa after receiving death threats and an attempted kidnapping of their father was made in Dubai because of the application made by Badaspex and the media exposure that was given to the case.
Bakharia said: “There are legal proceedings that can be followed [but affected] investors have pushed the limits and have taken matters into their own hands. I don’t blame them as well, when there has not been any communication from the brothers to their clients”.
He suggested that those wishing to trade crypto should work with platforms that are reputable which haven’t had hacks because it shows that their platform is robust.
Watch the full discussion here:
