Investment firm vanishes with $3.6 billion in Bitcoin ! May be the biggest crypto scam in history

A South African cryptocurrency investment firm has shut down after claiming to have been the victim of an online attack. The company is said to have now liquidated its assets in the form of bitcoin, while its founder is nowhere to be found.
Cryptocurrencies are still finding their place in today’s economy. While many factors argue for its cause, its regulation seems impossible in many ways. A recent incident serves as an unwelcome example of the same thing.
A South African cryptocurrency investment firm is now being blamed for misleading investors of nearly 69,000 bitcoins with an estimated value of around $3.6 billion. Founded by a pair of brothers, the local firm shut down its operations after telling investors that the funds had been stolen by hackers.
The incident was recently reported to Hawkes, South Africa’s Directorate of Priority Criminal Investigation (DPCI), or a specific unit of the national police force. The matter was reported by a Cape Town law firm after the two brothers were not traced.
A Bloomberg report sheds light on the matter. It claims that the duo’s older brother, Amir Qazi, who served as Africrypt’s COO, first reported the attack on the company’s accounts to investors in mid-April. At the time, Qazi asked customers not to report the attack to authorities, claiming that any investigation would slow down the recovery process.
Following the mail, some investors approached a law firm to investigate the matter. The law firm found that employees of the company were stripped of backend access to AfriCrypt seven days before the alleged attack.
The company’s deposited funds, which were lying in its South African accounts as well as client wallets, were transferred as bitcoin to avoid any trace of subsequent transactions.
After money laundering, both the brothers stopped taking calls, while the company’s website also went down. The report mentions that South Africa’s Finance Sector Conduct Authority is also investigating the scam. However, since cryptocurrency is not officially recognized as a financial product in the country, it cannot initiate a formal investigation into the matter.
If the scam goes as predicted, AfriCrypt could turn out to be the biggest cryptocurrency scam ever seen. The incident is a shocking example of how the decentralized nature of cryptocurrency can be used for illegal purposes such as money laundering, making it a perfect cover for such criminal activities.

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