An unknown investor proposed to acquire a 51% stake in the collapsed cryptocurrency investment company Africrypt for $5 million. However, in exchange for the offer, the investor hopes to withdraw all criminal proceedings against the directors of Africrypt.

The offer must be supported by 75% of creditors

According to a report According to Moneyweb, Africrypt creditors will vote on the compromise proposal on November 12, 2021. However, the proposal can only become a court order after it has the support of 75% of creditors.

As before Report According to Bitcoin.com News, Africrypt crashed when the company’s two young directors, Raees and Amir Cajee, reported that the company’s system was compromised. Soon after claiming that Africrypt was the victim of a hacker attack, Cajees disappeared with investor funds. This in turn prompted Africrypt investors to initiate legal proceedings against the two directors.

However, as part of the compromise proposal that has been submitted to creditors, investors will pay US$4 million (R61.6 million) to pay creditors’ claims against Africrypt. The remaining US$1 million will be used to increase the company’s working capital.

In addition to trying to rescue Africrypt and protect the two directors from possible criminal prosecution, the investor, who asked not to be named, also proposed to hire the Cajee brothers — and appoint liquidator Eugene Januarie — to join Africrypt’s board of directors.

Offer allows Cajee Brothers to avoid criminal prosecution

Although some creditors are considered to be in favor of accepting the proposal, the report shows that some creditors are dissatisfied with allowing the Kaji brothers to trade unscathed. For example, the report cited an unnamed creditor who opposed the transaction. The creditor said:

For Cajees, this is a “jailbreak card”. In addition to people who are very close to the Cajee family, who else would invest in such a company as if it had any credibility or chance of success.

However, another creditor said that the proposal might get the support it needs, because this is the only situation where the creditor has a real chance of getting something. Similarly, the report quoted Darren Hanekom, a lawyer representing some creditors, who also expressed support for the transaction.

“Considering the current prices of Bitcoin and Ethereum, this proposed compromise must be made at a convenient time. We believe that when the proposal is submitted for voting, all creditors will make the right decision,” Hanekom explained.

What is your opinion on the proposal of an unknown investor to acquire Africrypt shares? Tell us what you think in the comments section below.

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