FinCEN

A group of journalists in South Africa contacted one of the leading banks in South African namely FNB regarding one of the alleged customers of the bank which was apparently involved in the second biggest crypto fraud scheme in the country. In response, the bank denied that it never rendered any banking services to an entity named “Africrypt” nor the bank had ever facilitated the execution of Africrypt’s transactions.

South Africa had not yet done away with its biggest crypto scam which was committed by Mirror Trading, also known as “MTI”. MTI executed a crypto exit scam and as a result, looted billions of dollars from South African customers. After looting the money, one owner/partner of the firm absconded while the other is in jail facing trial. The Courts in South Africa had, in the meantime, passed interim orders of liquidating the assets of MTI and appointed a liquidator. However, the arrested partner/owner of MTI has been contesting the case vigorously. He is trying to convince the Court that there is no need to pass the final order of liquidation. But the Court has reserved the judgment which will be announced on the next date.

Meanwhile, another crypto fraud emerged in South Korea which was though not as big as MTI, yet no less than that of MTI. The fraud is known by “Africrypt”, a crypto trading platform that too committed an exit scam. While the inquiry against Africrypto is still continuing, but the investigating agency was wondering how billions of dollars were taken out so easily.

It came into the knowledge of the investigating agencies that Africrypt was acquiring banking services in South Korea. Upon investigation, the agency noted that the exit scammer was a customer of FNB, a leading financial institution in South Africa. When some journalists reached the bank and enquired about Africrypt, the bank first refused to give any comment. Later upon, on the insistence of the press, the bank denied having any sort of connection between the two. FNB told the media that neither Africrypt was one of the customers nor the bank had rendered any banking services to the fraudster.

With regard to the submission of account-related information, FNB said that under the bank’s policy, the bank is not authorized to give any information. If the information requested is regarding any specific account, then under the policy, the request is turned down. It is only when the apex Court of the country passes a special order that information could be provided to the Court. Even in that situation, only the Court is authorized to see the information and not meant for the general public.

Africrypt is another exit scammer which committed crypto crimes in South Africa. The firm was operated by two brothers namely Raees Cajee and Ameer Cajee who were also the directors of the firm. At first, the firm notified that a breach of the network was caused by hackers who stole billions of dollars. It was later revealed that the two directors took all the investors’ money and fled away.

 

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