How did these two young and naive men fool millions of people into believing in their crypto scam and eventually stealing over $3.6 Billion of their money? This is the story of greed wrapped in fraud and a lavish lifestyle.

Welcome to crypto forensics - Africrypt

The Beginning

Ameer and Raees Cajee are the two brothers who founded Africrypt. They are from South Africa, and they had a relatively unknown background before they launched Africrypt. They are 17 And 21 year-olds who were naive, yet had the guts to pull such a scam.

They founded Africrypt in 2019, and the platform quickly grew. Even with no big name publicly supporting the project, they quickly had people deposit over $3.6 Billion. But how?

How They Managed To Scam People

These guys started out in South Africa. They promised a 500% return on investment to anyone who deposited Bitcoin on their platform. With a tough economic situation, the idea of getting 5x on an investment looked like a great offer.

Within three years of launch, they had already amassed over $3.6 Billion on the platform. Some people were getting returns, while the majority couldn't do anything.

They also boldly wrote on their website that they are a "government backed and regulated platform."

How People Found Out It Was A #Scam

All who got in early make five times their initial investment. This made some of them reinvest money in the platform.

Some others among those who made some gains became spokespersons for Africrypt, inviting others to come join the platform.

As the saying goes, "If it's too good to be true, it probably is." This was true in the case of Africrypt. Whenever people wanted to withdraw, they got a message telling them to wait.

It was later discovered that these two brothers would take money from new investors and give it to old investors. This was a clear classic ponzi scheme.

As the number of new investors dropped, it became more difficult to pay old investors. This led to rumours.

The Collapse Of Africrypt

By April 2021, they announced that Africrypt had been hacked and that all of the investors' funds had been stolen. The brothers then disappeared, and they have not been seen or heard from since.

The South African government opened an investigation into Africrypt and it's founders, but no one knows where the two brothers are at the moment.

They stole a total of 69,000 Bitcoins amounting to $3.6 Billion at the time. Most of that money was broken down and sent to several wallets. They then used mixers to transfer the money.

The Lessons

There are so many lessons that can be learned from the Africrypt scam. I'll share some, and then you may share yours as well in the comments section below

  • Always verify information before making any investment, #DYOR

  • If it seems too good to be true, it probably is

  • If any project says it is backed by government or claims to be "regulated," don't just take their word for it. Verify if it's true or not

  • Never ignore red flags. They are there for a reason.

Conclusion

The Africrypt scam by two young brothers is another example of how many ponzi schemes are disguised in crypto. This further emphasizes the need to DYOR and to always verify information before passing it on to others.