Another unnamed investor offers to save collapsed South African crypto firm – regulation

A new unnamed investor has offered to bail out Africrypt, the collapsed South Africa-based crypto investment company, with $5 million. The offer, which does not require the dismissal of criminal charges against Africrypt directors, must be accepted within seven days.

A better offer

A new mystery investor has offered to bail out collapsed crypto investment firm Africrypt with $5 million, a report says. However, investors were given seven days to accept an offer dated December 3, 2021.

As before reported From Bitcoin.com News, another unknown investor had originally offered $5 million in exchange for 51% of Africrypt shares. As part of the terms of this offer, the investor wanted all criminal proceedings against Africrypt's missing directors, Raees and Amir Cajee, to be dropped.

Unlike the first rescue offer, the latest — according to a Test report from Moneyweb — does not force creditors to agree to the condition proposed by the first investors. Nevertheless, this new offer forces investors to accept only a fraction of the money originally invested.

This condition means that Afrcrypt investors would not benefit from the appreciation in the value of the crypto assets the company acquired in September 2019. As explained in the report, investors would only be entitled to a payout that is ten times lower than the current value of the digital assets owed to them.

Although the identities of the two new mystery investors are still unknown, Ruann Kruger, a legal representative of Africrypt's liquidators, is quoted in the report confirming that the second investor is indeed a company. The lawyer also confirmed that out of the 181 investors, around 35 have accepted the offer.

Allegations against the Cajee brothers

The report says some Africrypt investors believe the latest offering is being made by the Cajee brothers, citing an unnamed investor representative as saying:

There is of course a suspicion that this offer is coming through a proxy for the Cajees and that we are being paid out with [our] own money. In any case, this is a smart tactic no matter who the investor is. It's a divide [and] rule tactic.

Meanwhile, claims that the Cajee brothers are also behind the initial offering appear to be confirmed by a letter from the liquidators to Africrypt investors. In the letter, the liquidators suggested that the first mystery investor stopped communicating with them after they suggested changing certain terms of the original offer.

Regarding the latest rescue offer, the liquidators said this was “a good, firm and less complicated offer open for acceptance for the next seven days.” According to the report, investors who accept the offer will receive 65% for every rand (or 65% of the invested funds) for each proven claim within five days of signing.

Do you think the latest offering for Africrypt investors is better than the first? Tell us what you think in the comments below.

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