An unknown investor has proposed to acquire a 51% stake in Africrypt — the collapsed cryptocurrency investment company — for a purchase price of $5 million. The investor is asking for the cessation of all criminal prosecutions against Africrypt directors in return.
Offers must be supported 75% by Creditors
Moneyweb reported that Africrypt creditors were set to vote for the compromise offer in November 2021. The court can make this offer if 75% of creditors agree to it.
As previously reported by Bitcoin.com News, Africrypt collapsed when the firm’s two young directors, Raees and Amir Cajee, reported a breach of the company’s systems. The Cajees, who claimed that Africrypt had been the victim of hacking, disappeared with the investor funds. Africrypt investors launched legal proceedings against these directors.
However, as part of the compromise offer that has been presented to creditors, the investor will pay $4 million (R61.6 million) which will go towards the payment of the creditors’ claims against Africrypt. The remaining $1 million would be used to boost the firm’s working capital.
In addition to the attempt to rescue Africrypt and to protect the two directors from possible criminal prosecution, the unnamed investor has also proposed the hiring of the Cajee brothers — as well as the appointment of the liquidator Eugene Januarie — to the Africrypt board.
Cajee Brothers are able to avoid criminal prosecution with this offer
Although some creditors seem to support the deal, others aren’t happy that the Cajee brothers are able to walk away unscathed. One creditor is quoted in the report as being against the deal. This creditor stated:
It’s a ‘get out of jail free card’ for the Cajees. If a company like this had credibility and a chance of succeeding, who would do it?
Another creditor said that the deal is most likely to be accepted because creditors are unlikely to get anything else. The report also quotes Darren Hanekom as an attorney who supports the agreement.
“This proposed compromise certainly comes at a convenient time considering the current prices of bitcoin and ethereum. We trust that the general body of creditors will make the right decision when the proposal is tabled for a vote,” explained Hanekom.
What are your views about the unknown investor’s offer to buy a stake in Africrypt? Please comment below to let us know your thoughts.
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