A South African court granted liquidators of Africrypt, a collapsed bitcoin investment company, the power to locate missing investor funds. Africrypt liquidators now have the power to sell assets and properties belonging to the company as part of the court’s decision.

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. As doubts mount over the claims by Africrypt directors of being hacked by Ukrainian hackers, this latest South Africa court decision comes at a time when there are more questions.

For instance, Ruann Kruger (liquidators’ legal representative) is said to have released a statement in which he delves into Africrypt’s questionable business model. The statement, which questions Africrypt’s business model, also targets the evidence used by the firm’s management to support 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 reads

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

The report also quotes liquidators who explain the significance of the court’s decision giving them additional powers. The liquidators stated:

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 main purpose of the liquidator is to locate assets and attempt to access Africrypt systems. They will also be able to retrieve bitcoin wallets and other funds that investors have invested.

To aid in the recovery process, the liquidators confirmed the hiring of a forensic auditor to examine the affairs of Africrypt as well as related parties.

Do you agree that these additional powers are going to be useful to the liquidators’ cause? Let us know what you think below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services in this article.

Read More