$3.6 Billion Crypto Theft: South African Bank Denies Affiliation With Africrypt Accused of Fraud

According to local media, leading South African financial institution FNB is denying allegations of banking ties with the recently collapsed crypto investment firm Africrypt. Africrypt abruptly ceased operations Africrypt abruptly ceased operations about two months ago, which caused the bank to reject its request. At the time, the management of the crypto investment firm claimed that Africrypt's trading system had been hacked. According to executives, the cyberattack affected customer accounts, wallets and nodes, causing Africrypt to freeze all accounts. In its "hack" announcement, Africrypt said: "We are sorry to inform you that as a result of the recent breach in our system, client accounts, client wallets and nodes have all been compromised…" Unfortunately, this has forced Africrypt. to stop operations… We invite all our customers to be patient as we try to resolve the situation. It's understandable that customers could go to court, but we want customers to know that this will only slow down the recovery process." Shortly after the alleged breach, however, Africrypt directors Ameer Cajee and her brother Raees Cajee said, "The pooled funds of the crypto investment will be blocked from South African accounts via bitcoin in April 2021 According to South African media reports, the account of $3.6 billion in investor funds cannot be disclosed. Meanwhile, FNB spokesperson Nadiah Maharaj refused to acknowledge the existence of any relationship between FNB and Africypt in response to a media question. Referring to restrictions on privacy, Maharaj said: "FNB reaffirms that it has no banking relationship with Africrypt. Due to customer privacy, FNB cannot provide information about certain bank accounts." When approached for comment, Ziyada Mtshali SA Reserve Bank (SARB), senior media relations coordinator, said that crypto-related issues are within the scope of the Financial Industry Conduct Authority.

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