Investors in Collapsed South African Crypto Platform Reimbursed a Portion of Invested Funds – Regulation Bitcoin News

Africrypt’s now defunct South African crypto exchange platform was able to reimburse investors a part of the invested money. The payments were made by Pennython Project Management LLC as part of a settlement offer that potentially ends claims against Africrypt’s runaway directors.

White Knight Investor Identity Revealed

Africrypt is a South African cryptocurrency investing platform that has collapsed. According to a report, investors began receiving payments from a white knight investor.

Itweb reported that Africrypt investors received the payments after the majority of them accepted the offered. Bitcoin.com News reported that Pennython Project Management offered to pay a minimum of 65% on each dollar of investment.

Although investors weren’t happy about the offer Ruann Kruger (an attorney representing Africrypt provisionalliquidators) is quoted in an Itweb report as confirming that the majority had accepted it. The report states that claims worth $8.4 million (or R131 million) were paid out to 199 creditors in December 2017.

The report also revealed that the decision by a majority of investors to accept Pennython Project Management’s offer might result in the dismissal of a court application to have Africrypt liquidated. Next court hearing on this case is scheduled for January 22, 2022.

Pennython Project Management’s Unnamed Directors

Although the name of the investor who made the settlement offer has been released, it is not known if the identities of Pennython Project Management directors were disclosed. According to the report, an agreement was reached not to reveal their identities. This has led to claims that Africrypt’s two young directors, Raees and Ameer Cajee, are in fact behind the Dubai-registered Pennython Project Management.

Raees, Ameer and Ameer Cajee fled South Africa after reporting on the hacking of their platform. Reports initially indicated that the brothers were missing $3.6 million in investment funds. The Cajees — whose is whereabouts are still unknown — have insisted that the actual figure of missing funds is much lower than that.

The payouts to investors, which were supposed to have been concluded by December 22, are said to effectively end all claims against the Cajee brothers, and as one attorney suggested, it provides them with “an opportunity to resuscitate the business.”

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Terence Zimwara

Terence Zimwara was a Zimbabwe-award winning journalist, author, and writer. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.