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Africrypt

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Summary

Africrypt was a South African cryptocurrency investment platform founded in 2019 by brothers Raees and Ameer Cajee. In April 2021, the platform abruptly shut down following an alleged hack, after which the founders fled South Africa with investor funds. The case became one of the most prominent alleged cryptocurrency exit scams in African history, though the exact amount lost remains disputed.

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Background and Operation

Africrypt was founded in 2019 by Raees Cajee and Ameer Cajee, who were approximately 17 and 20 years old at the time of founding, respectively. The platform was marketed as a high-yield cryptocurrency investment service operating in South Africa. Africrypt promised investors returns of up to 10% daily or up to 13% per month through a proprietary algorithmic trading system that the founders claimed utilized artificial intelligence. Investigators and the Financial Sector Conduct Authority (FSCA) later described these promised returns as 'exceptionally high and unrealistic,' characteristic of Ponzi scheme structures. Internally, the platform operated as a centralized system with no external oversight, no security audits, no asset segregation, and no standardized investor agreements. Client funds were pooled and moved at the founders' discretion, including allegedly into personal accounts.

Sources

Collapse and Alleged Exit Scam

On April 13, 2021, Africrypt investors received an email claiming the platform had suffered a hack and that all investor funds had been lost. Critically, the communication — attributed to CEO Ameer Cajee — urged investors not to report the incident to authorities or legal counsel, warning that doing so would complicate recovery efforts. This instruction was later identified by investigators and attorneys as a red flag consistent with exit scam methodology. Darren Hanekom of Hanekom Attorneys, retained by a group of investors, reported that blockchain analysis showed the 69,000 BTC held by Africrypt had been moved from client wallets through dark web tumblers and cryptocurrency mixers, fragmenting the funds to obstruct tracing. This on-chain activity was inconsistent with an external hack and consistent with deliberate internal movement of funds. Shortly after the platform went dark, both Raees and Ameer Cajee left South Africa, reportedly traveling through the Maldives to the United Kingdom and subsequently to Dubai.

Sources

Disputed Loss Figures

Initial media reports, including coverage by Bloomberg, estimated that 69,000 BTC worth approximately $3.6 billion (ZAR 54 billion) at April 2021 prices had disappeared. The Cajee brothers' then-attorney, John Oosthuizen, disputed the valuation and declined to confirm the figure. Subsequent investigations and reporting by outlets including MyBroadband placed the verified investor losses significantly lower, in the range of $40 million to $50 million USD, reflecting the difficulty of reconciling actual investor deposits with the claimed 69,000 BTC figure. The exact amount lost has never been conclusively established in public legal proceedings. The initial $3.6 billion figure reflected an assumption that all 69,000 BTC were legitimately held client assets, which has not been independently verified.

Sources

Regulatory Response and South African Oversight Gaps

On June 24, 2021, the Financial Sector Conduct Authority (FSCA) issued a public statement confirming that because cryptocurrency was not recognized as a regulated financial product under South African law at the time, it was unable to take formal regulatory action against Africrypt or the Cajee brothers. The Financial Intelligence Centre (FIC) similarly declined to act due to the same legal grey zone. The FSCA's Brandon Topham noted that the South African Reserve Bank (SARB) and South African Revenue Service (SARS) would look into the matter. Hanekom Attorneys notified the Hawks, South Africa's Directorate for Priority Crime Investigation, who opened an investigation. The National Prosecuting Authority (NPA) was also engaged. A provisional liquidation order against the Cajee brothers was granted by the South Gauteng High Court, with the brothers given until July 19, 2021 to contest it. The Africrypt collapse, alongside the 2020 collapse of Mirror Trading International (which lost approximately $1.2 billion), accelerated South African regulatory efforts to develop a formal framework for cryptocurrency oversight.

Sources

Swiss Criminal Investigation

Following the platform's collapse, Swiss authorities opened criminal proceedings against the Cajee brothers through the Public Prosecutor's Office III of the Canton of Zurich on suspicion of money laundering. Investigators discovered the brothers had maintained hardware wallets stored in safety deposit boxes in Zurich. Ameer Cajee was arrested in late 2021 during an alleged attempt to access these safety deposit boxes. He was held in pretrial detention for approximately six months before being released on bail of approximately 300,000 Swiss francs. His challenges to bail conditions requiring him to remain in Switzerland were rejected by Switzerland's Federal Supreme Court. Reports from 2025 indicated that Swiss prosecutors later withdrew the money laundering case against Ameer Cajee; legal observers suggested this followed the withdrawal of key investor complaints tied to settlement agreements, though the Zurich Public Prosecutor's Office maintained limited public transparency about the matter.

Sources

Investor Civil Proceedings and Settlement Disputes

Investor attorney Sean Peirce of Coast to Coast Special Investigations stated publicly that investors were pursuing charges of fraud, theft, and money laundering against the brothers, with potential sentences of 10 to 15 years. A complicating factor arose when it emerged that many investors had signed agreements transferring their claims to Pennython Project Management, a Dubai-registered firm, in exchange for approximately 70 cents on the dollar (61 cents per rand). Africrypt attorney Rashaad Moosa indicated that investors who signed these agreements may have forfeited the right to pursue civil or criminal proceedings independently. An investor allegedly claiming losses of approximately $50 million retained a separate legal team, with reports as of early 2026 indicating that legal papers had still not been served on the Cajee brothers.

Sources

Return to South Africa and Current Status (2026)

As of February 2026, South African investigative television program Carte Blanche reported that Raees and Ameer Cajee had quietly returned to South Africa and were residing at the gated Zimbali Estate in KwaZulu-Natal, with additional ties traced to Umhlanga and Johannesburg. Journalists were unable to make direct contact with the brothers. No formal criminal charges had been filed against the brothers in South Africa as of the time of reporting. Despite the Hawks investigation and NPA engagement, no arrest warrants had been publicly issued. The brothers retain private security at their residence. A lawyer representing a major investor stated: 'They can protect themselves. They've got security. Because they have money.'

Sources

Timeline

2019-01-01

Africrypt founded by brothers Raees and Ameer Cajee in South Africa; platform promises daily returns of up to 10% through alleged algorithmic trading

Daily Maverick

2021-04-13

Africrypt investors receive email claiming the platform was hacked; investors are told not to report the incident to authorities or lawyers

CoinGeek

2021-04-01

Hanekom Attorneys, retained by investors, discovers 69,000 BTC moved from Africrypt wallets through dark web tumblers and mixers; both Cajee brothers leave South Africa

BankInfoSecurity

2021-06-23

Bloomberg publishes story on Africrypt collapse, reporting $3.6 billion in Bitcoin missing alongside the Cajee brothers

Bloomberg

2021-06-24

FSCA issues public statement confirming it cannot take regulatory action against Africrypt as cryptocurrency is not a regulated financial product under South African law

TechCabal

2021-07-01

South Gauteng High Court grants provisional liquidation order against the Cajee brothers; brothers given until July 19, 2021 to contest

TechCentral

2021-11-01

Ameer Cajee arrested in Zurich, Switzerland while allegedly attempting to access safety deposit boxes containing hardware wallets; held in pretrial detention for approximately six months

Satori News

2022-01-03

Bloomberg reports investors pushing charges despite mystery partial payouts via Pennython Project Management (Dubai); many investors had signed agreements forfeiting independent legal claims

Bloomberg

2022-06-01

Ameer Cajee released from Swiss pretrial detention on bail of approximately 300,000 CHF; bail conditions requiring him to remain in Switzerland upheld by Switzerland's Federal Supreme Court on appeal

Satori News

2025-02-14

Reports confirm Swiss prosecutors investigated the brothers for money laundering but that the case against Ameer Cajee was subsequently withdrawn, reportedly after investor complaints tied to settlement agreements were withdrawn

Satori News

2026-02-17

South African TV program Carte Blanche reveals the Cajee brothers have quietly returned to South Africa and are residing at the gated Zimbali Estate in KwaZulu-Natal; no criminal charges have been filed in South Africa

CoinTelegraph

model: claude-sonnet-4-6

generated: 5/5/2026, 4:10:04 PM

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