Unnamed South African investor offers to buy 51% stake in collapsed crypto firm for $ 5 million

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An unknown investor has offered to acquire a 51% stake in Africrypt – the collapsed cryptocurrency investment firm – for a purchase price of $ 5 million. However, in exchange for the offer, the investor wants all criminal charges against the directors of Africrypt to be dropped.

Offer must be supported by 75% of creditors

According to a report from Moneyweb, Africrypt’s creditors are expected to vote on the offer in compromise on November 12, 2021. However, this offer can only become a court order if it receives the support of 75% of creditors.

As previously reported by Bitcoin.com News, Africrypt collapsed when the company’s two young directors, Raees and Amir Cajee, reported a breach of the company’s systems. Shortly after alleging that Africrypt was the victim of a hack, the Cajees disappeared with the funds from the investors. This prompted Africrypt investors to take legal action against the two directors.

However, as part of the Offer in Compromise that has been presented to the creditors, the investor will pay $ 4 million (Rand 61.6 million) which will be used to pay off creditors’ claims against Africrypt. The remaining million dollars would be used to increase the working capital of the company.

Besides trying to rescue Africrypt and protect the two directors from possible criminal prosecution, the anonymous investor also proposed the hiring of the Cajee brothers – as well as the appointment of liquidator Eugene Januarie – to the board of directors of Africrypt.

Offer helps Cajee brothers avoid criminal prosecution

While some of the creditors would be in favor of accepting the offer, the report suggests some are not happy with a deal that allows the Cajee brothers to get away with it unscathed. For example, the report cites an anonymous creditor who is against the deal. The creditor declared:

It’s a “free jail release card” for the Cajees. Who would invest in a business like this as if it had any credibility or chance for success other than someone very close to the Cajee family.

Yet another creditor suggested that the offer is likely to receive the required support as this is the only scenario where creditors have a realistic chance of getting something. Likewise, the report quotes Darren Hanekom, the lawyer representing some of the creditors, also expressing support for the deal.

“This proposed compromise certainly comes at an opportune time given current bitcoin and ethereum prices. We hope all creditors will make the right decision when the proposal goes to a vote,” Hanekom explained.

What do you think about the offer from the unknown investor to buy a stake in Africrypt? Let us know what you think in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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