Court Grants Liquidators Authority to Track Missing Africrypt Investor Funds – Regulation Bitcoin News

A South African court has granted liquidators of the collapsed bitcoin investment firm Africrypt the powers to track down missing investor funds. Also, as part of the court decision, Africrypt liquidators will now have the authority to sell assets and property belonging to the company.

Africrypt’s Evidence Under the Microscope

According to a report, the court decision follows recent claims that Raees Cajee, one of the collapsed firm’s directors, is opposing the final liquidation of Africrypt from his hideout in Tanzania. The latest decision by the South Africa court comes as doubts grow surrounding Africrypt directors’ claims of a breach by Ukrainian hackers.

For instance, in the past few weeks the liquidators’ legal representative, Ruann Kruger, is reported to have released a statement wherein he unravels Africrypt’s dubious business model. In addition to questioning Africrypt’s model, the statement also takes aim at the evidence which has been used by the firm’s management to back the hacking claims.

After examining Africrypt’s claims, Kruger’s statement goes on to repeat earlier allegations that Raees and his brother, Ameer, may have had a hand in the disappearance of investor funds. The statement says:

There is no evidence that this was indeed a hack of the Africrypt systems, and in support thereof, it seems that funds were depleted from the Africrypt wallets four months before the alleged hack.

Soon after Africrypt abruptly stopped operating back in April 2021, a group of investors immediately applied for the court to grant a liquidation order against the investment company. According to the report, a provisional order was duly granted on April 26, while parties to the final liquidation proceedings are now expected to argue their cases in September.

Tracking Down Africrypt Assets

Meanwhile, the report also quotes liquidators explaining the importance of the court’s decision to grant them additional powers. The liquidators said:

With the liquidator’s extended powers, they will be able to investigate and interrogate the relevant parties, directors, and their related companies during the enquiry to uncover the mystery behind this ostensible bitcoin heist. The liquidator’s main objective is to track down assets, attempt to gain access to Africrypt systems and their source codes to recover bitcoin wallets and funds invested and lost by investors.

To aid in this process of recovery, the liquidators confirmed that a forensic auditor has been hired to look into the affairs of Africrypt and related parties.

Do you agree that these additional powers are going to be useful to the liquidators’ cause? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons