London Daily

Focus on the big picture.
Friday, Oct 02, 2026

South Africa Crypto Exchange Brothers Disappear After Client Cash Vanishes

South Africa Crypto Exchange Brothers Disappear After Client Cash Vanishes

In April, Africrypt COO Ameer Cajee had said that client accounts had all been compromised due to a recent breach in its system
Lawyers for investors in a cryptocurrency exchange in South Africa, which told clients in April their accounts had been hacked, say $3.6 billion has disappeared from the platform and that the two brothers who ran it cannot be traced.

If confirmed, Africrypt's losses would rank among the biggest crypto losses yet. For the whole of 2020, losses in the crypto sector through fraud and other crime were $1.9 billion, down from a record of $4.5 billion in 2019, according to crypto intelligence company CipherTrace.

Africrypt COO Ameer Cajee said in a letter to clients, dated April 13, that client accounts had all been compromised due to a recent breach in its system. The letter, reviewed by Reuters, said Africrypt had halted operations and had "begun the process of attempting to retrieve stolen funds."

It gave no details of how much money was missing and warned clients that trying to get their money back using lawyers would "only delay the recovery process."

Hanekom Attorneys, a law firm hired by some of those who say they have lost money, told Reuters in a statement their investigations had so far found a total of $3.6 billion had vanished from Africrypt. The firm did not immediately respond to a request for comment on how it reached that figure.

Reuters could not reach Africrypt for comment. Calls to Cajee's mobile phone went to voicemail and he did not respond to text messages. The exchanges's website is offline.

Darren Hanekom, a lawyer representing the investors, said that Cajee and his brother and co-founder Raess had been untraceable since the April 13 letter and that he had referred the matter to South Africa's specialist anti-corruption police, nicknamed the Hawks, on April 16.

Bitcoin reached a record high of almost $65,000 on April 14.

Philani Nkwalase, spokesman for the Hawks, said they had so far been unable to open the case because Hanekom Attorneys is based in Western Cape and those seeking to recover their money are in other provinces.

"We advised those individuals to please open cases where they are," he said by telephone. "Go to the nearest police station."

Zakira Laher, Cajee's cousin, who said she was an Africrypt director until she quit in 2019, told Reuters the brothers had been missing since April.

"I say this on behalf of the whole family that we have no idea where they are," she said by telephone. "Around about mid-April, they just stopped talking to us. They're not responding to us in WhatsApp."

Hanekom said he had alerted several other crypto exchanges of the case and that his firm had this month informed South Africa's Financial Sector Conduct Authority (FSCA), but that it could not get involved as it does not regulate cryptocurrencies.

The FSCA's head of enforcement, Gerhard van Deventer, told Reuters in response to questions about Africrypt that crypto currency is not defined as a financial product and that the FSCA did not have jurisdiction to investigate.

"We are in the process of bringing crypto into the regulatory fold," he said.
Newsletter

Related Articles

0:00
0:00
Close
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
×