An unknown investor hailing from South Africa had made the offer to buy a 51% stake in the collapsed crypto investment company named Africrypt for a total value of $5 million. However, the mysterious investor wants something in exchange as well; he said that all criminal proceedings against the directors of Africrypt be dropped. Moneyweb published a report showing that a vote would be conducted by Africrypt creditors on the compromise offer on 12th, November 2021. It is important to note that only if 75% of the company’s creditors vote in favor of the offer, then it will be declared order of the court.
It had been reported previously that Africrypt had collapsed when a breach in the systems of the investment company was reported by its two young directors, brothers Amir and Raees Cajee. The Cajees had alleged that Africrypt had become a victim of a hack and soon after doing so, the two brothers had vanished, along with all the funds of the investors. These turn of events prompted Africrypt investors to initiate legal proceedings against the owners. Now, the creditors have been presented with a compromise offer. As per this offer, the investor will pay a sum of $4 million, which is equal to R61.6 million that will be used for paying of the creditors’ claims against the company.
As far as the remaining $1 million are concerned, they would be used to give the working capital of Africrypt a boost. The unnamed investor also went on to rescue the company and protect its two directors from legal consequences by proposing that they hire the two brothers and also bring Eugene Januarie, the liquidator, to the company’s board. According to reports, some of the creditors are more than ready to accept this offer, but there are also those who are not willing to see the Cajee brothers come out of the whole situation fully unscathed.
One of the creditors who is against the deal and remains unnamed said that this was the equivalent of a ‘get out of jail free card’ for the two directors. The creditor said that only someone close to the Cajee family would be willing to invest in a business like this. However, another creditor said that there was a good chance that the offer would be accepted because it was the only situation where the creditors have the possibility of getting something instead of being left empty-handed.
Likewise, reports indicated that the attorney representing a few of the creditors, Darren Hanekom, had also expressed his support for the deal. The lawyer said that this offer had come at a rather good time because of the prices of bitcoin and ethereum that are soaring. He said that when the proposal is put forward to a vote, they were hoping that the general body of creditors would make the right decision that would benefit everyone. Not opting for the proposal would mean that the creditors don’t have much of a chance of seeing any of the money they have already lost.