Bitcoin replica coins are seen on November 13, 2017

South Africa’s financial services regulator has said it can’t take any action over a suspected scam that lawyers say has caused as much as $3.6 billion worth of bitcoin to go missing.

The country’s Financial Sector Conduct Authority said Thursday that Africrypt, the company linked to the lost holdings, looks like a Ponzi scheme set up to defraud investors.

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.

Yet…

Read more…