- South Africa’s regulator said it’s powerless to act on a suspected $3.6 billion bitcoin scam.
- Two brothers who founded Africrypt appear to have gone missing, along with bitcoin worth billions.
- South Africa’s FSCA said the company appears to be a Ponzi scheme designed to defraud investors.
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Yet the FSCA said that as cryptocurrencies are not regulated financial products or services in South Africa, it is powerless to do anything in this case.
“At this stage we have only found evidence of crypto asset transactions,” it said in a statement. “Currently crypto assets are not regulated in terms of any financial sector law in South Africa and consequently the FSCA is not in a position to take any regulatory action.”
Africrypt was created by brothers Ameer and Raees Cajee in 2019, and based in Johannesburg in South Africa.
According to a police statement seen by Bloomberg, the company promised high returns of up to five times principal investments.