South Africa FNB financial institution denied all allegations of having a banking relationship with a failed crypto investment company Africrypt as we are reading more in our latest cryptocurrency news today.

Africrypt abruptly ceased operations two months ago and prompted the banking institution’s denial. The investment firm’s management claimed at the time that Africrypt’s trading system was hacked. According to the directors, the cyberattack impact other client accounts, wallets, and nodes which caused Africrypt to freeze the accounts. Announcing the hack Africrypt said:

“We regret to inform you that due to the recent breach in our system, client accounts, client wallets and nodes were all compromised …Unfortunately, this has forced Africrypt to halt operations … We urge all clients to please be patient as we attempt to resolve the situation. It is understandable that clients may proceed the legal route, but we ask clients to please acknowledge that this will only delay the recovery process.”

However, right after the breach, AFricrypt directors Ameer Cajee and his brother Raees Cajee are alleged to have “transferred the crypto investment’s pooled funds from its South African accounts through BTC on the blockchain in April 2021” so the South African media reports estimated that about $3.6 billion in investor funds can’t be accounted for. In the meantime, South Africa FNB Investment spokesperson Nadiah Maharaj declined to accept the existence of any relationship between Africrypt and FNB in answer to a media query so Maharaj who cited the client confidentiality limitations said:

“FNB once again confirms that it does not have a banking relationship with Africrypt. Due to client confidentiality, FNB cannot provide any information on specific bank accounts.”

When asked for a comment SA Reserve Bank SARB senior media relations co-ordinator Ziyanda Mtshali said that the crypto matters are falling under the Financial Sector Conduct authority but the FSCA denied having jurisdiction:

“The Intergovernmental Fintech Working Group – which includes the SARB, the National Treasury, the SA Revenue Service, the FSCA, the Financial Intelligence Centre, the National Credit Regulator and the Competition Commission – is busy finalising an updated South African position paper on crypto assets. The position paper makes various recommendations around how to bring crypto-assets within the South African regulatory remedy in a phased and structured manner.”

According to the reports, the Cajee brothers escaped to the UK after draining money from investors but another study conducted by a law company hired by the Africrypt victims backs up the conclusions. In addition, the law firm’s investigations reveal that Africrypt directions were attempted to disguise the movement of the cash by using various mixers.

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Source: https://www.dcforecasts.com/bitcoin-scams/south-africa-fnb-denies-allegations-with-failed-crypto-company-africrypt/