South African bank denies link to $3.6 billion cryptocurrency fraud

One of South Africa’s largest banks, First National Bank (FNB), denies allegations of links to the insolvent crypto investment company Africrypt. Bitcoinist reports this, citing local media.

In April, Africrypt suddenly suspended operations, citing a breach of its trading system. According to management, the cyberattack affected clients’ accounts, wallets and nodes.

Media estimates put customer funds in the company’s funds at $3.6 billion. According to reports, after the alleged breach, Africrypt director Amir Kaaji and his brother Reis Kaaji transferred clients’ investments in Bitcoin to their own wallets.

Hanekom Attorneys, the law firm hired to investigate the victims of Africrypt’s insolvency, claims that the brothers used mixing services to obscure traces.

A representative of the country’s oldest bank (which has been operating since 1838) Nadia Maharaj declined to acknowledge any link with the company:

“FNB reiterates that it has no banking relationship with Africrypt. Due to client confidentiality requirements, the bank cannot provide any information about any specific accounts.”

The investigation into the incident was hindered by the absence of applicable norms: the central bank said cryptocurrency-related matters fall under the jurisdiction of the Financial Sector Conduct Authority (FSCA); the agency rejected this claim.

Earlier this year, a South African intergovernmental working group proposed tighter regulation of the cryptocurrency industry in the country.

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