Another Rug Pull

almost 3 years ago (Edited)

source
Who says crime doesn't pay except this according to the Financial regulators in South Africa wasn't a crime as no services were provided.

I find it quite amazing that people are still falling foul of fraudsters from not using just some common sense. Africrypt is the exchange in question and I have never heard of them and they traded out of South Africa.

$3.6 Billion is a huge score/fraud for the two brothers who are only 20 and 17 years of age. Something so simple if you think about what they have done and will no doubt walk away scot free. What makes it worse is when they started the exchange in 2016 they were 15 and 12 years of age so how was this even possible. If you open bank accounts at that age you still need a parent to counter sign on their behalf. The same applies for registering a company and must have had some outside help.

However, the government’s ability to investigate the matter is constrained by the lack of regulatory framework on digital assets in South Africa, which does not consider cryptocurrencies a financial product.
source

This is the biggest problem as not recognizing crypto as a financial product is ludicrous. We have countries who have made Bitcoin a legal tender and other countries lagging behind clueless on their next move. Crazy as this crime sounds you wonder why there aren't anymore if this isn't seen as a crime by the Financial regulators in South Africa.

The regulatory body, the Financial Sector Conduct Authority, has denied having jurisdiction. It was further stated that it was the FSCA’s view that no financial product or financial services were provided.

source

What I don't understand is why do people use exchanges that are not well known as surely going with an established exchange the risk is cut down. I find it interesting to think that a 20 year old and a minor managed to pull off the biggest scam in crypto and it is looking more than likely they will get away with it. If they will live to spend the money is another story as they will have to look over their shoulder for the rest of their lives.

We have seen rug pills on DeFi and just investing is only half the story as one has to research what you are investing into. Places like Kingdoms definitely will appeal to many more investors as peace of mind is definitely a plus. So many shit coins are being printed with high yields which unfortunately draw people in through sheer greed.

I am still puzzled why people would still use an exchange they know nothing about and why use an exchange that is in country that has basically no law regarding this type of thing. Mirror Trading International was a scam that has never been resolved and was up until then the biggest crypto scam ever and this has dwarfed that being nearly 6 x larger.

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19 comments

@chekohler 76

almost 3 years ago

This wasn’t an exchange it was a Ponzi offering greedy people 10% a day returns

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@cryptoandcoffee 82

almost 3 years ago

So similar to Mirror Trading and yet people still invested. What a bunch of fools.

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@chekohler 76

almost 3 years ago

Lol mirror did 10% a month these return promises are just getting crazier and crazier and people still don’t see the alarm bells

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@cryptoandcoffee 82

almost 3 years ago

What a bunch of fools. Obviously they don't like money as they just keep giving it away. I have never heard of them and why every article is calling it an exchange, but definitely isn't then.

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@taskmaster4450le 80

almost 3 years ago

That is all.

Come on, this is crypto. Anything under 30% return per day is a farce.

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@empress-eremmy 75

almost 3 years ago

I heard about it some hours ago, can't say I didn't think about the same thing. Something definitely looks off, what's more if they manage to get away with it it'll only point to an obvious insider arrangement

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@cryptoandcoffee 82

almost 3 years ago

Absolutely idiotic that this can be happening as it is theft and gives crypto a bad name yet again. I don't think they will be around to spend and enjoy the money.

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@phusionphil 70

almost 3 years ago

90% of traders loose money, nothing new here.

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@cryptoandcoffee 82

almost 3 years ago

Very true as many don't do their homework on just the basics.

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@phusionphil 70

almost 3 years ago

Before I started Trading over $50 orders, I made sure that I read up on the statistics. That is the uncomfortable statistic that the majority of Traders, being 40% of them who wouldn't admit it even to their investors.

These banking system slaves unwillingness to cooperate with transparent interpretations of their profitability, are likely to be slaves to the financial system for the rest of their life, and one of them will be the next one we see jump from the top of the building when they realize they're not able to afford the second car they want.

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@cryptoandcoffee 82

almost 3 years ago (Edited)

This is very scary and I know it is common traders often commit suicide as well. I trade for fun right now as I am still learning but obviously the end goal is to make a success out of it at some point, but never going to be my only income.

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@automaton 64

almost 3 years ago

It’s not worth losing one’s life over virtual currency. And that includes fiat. It’s all virtual money. These thieves give the entire crypto community a bad name.

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@phusionphil 70

almost 3 years ago

They are only thrives to people who are stupid enough to trust them, aka anyone that would be dead in the wild west.

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@taskmaster4450le 80

almost 3 years ago

One thing people need to learn is personal responsibility. It is really that simple. Many, like Mark Cuban, are screaming for regulation and governments to do something. Government is not the answer. Crypto is meant to operate outside of that.

Hence it is up to each individual to be smart with his or her money. Like the rug pull: get involved in a project where the developers are completely unknown, what do you think could happen?

People need to start thinking, something they are not accustomed to.

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@cryptoandcoffee 82

almost 3 years ago

You would think when it comes to hard earned money people would be more careful where they invest. Many don't think and why this will continue to happen.

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