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Africrypt Creditors Accept The Offer To Revive The Firm

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Investors who have their funds in the South African Crypto trading firm, Africrypt, have decided on a positive response to a proposal recently presented by an unnamed investor who is attempting to revive the collapsed company.

In addition to reimbursing $4 million which was going to be used to pay off several debts owed by the firm, the anonymous investor is also ready to give out $1 million which will go towards the acquisition of the majority of the company’s shares and its intellectual property rights.

In a previous report by Diutocoinnews, an unidentified investor had proposed funding the firm with a total of $5 million in the now-defunct crypto firm, all these in a bid to keep the company up and running.

While some of the creditors had indicated their objection to the investor’s proposal of having the charges against the two directors of Africypt dropped, there was a probability that they would eventually accept the offer.

Certainly, as the report from Moneyweb explained, a majority of the creditors selected in favour of the offer because this represents a more logical outcome for a lot of them. 

This notion is correctly summed up by Ruann Kruger who is the legal representative of Africrypt’s liquidators. Kruger stated:

There seems to be a belief among some that there is some useful intellectual property in the company, and the idea is that the company will acquire this as part of the compromise.”

Meanwhile, according to one of the Africrypt investors who wish to be unnamed, the amount of fund tabled for the bailout is not an entirely bad one.

“It’s not the worst deal one could hope for. We get maybe 40c or 50c back in the rand, and the company may be revived in such a way that the other funds are recouped over time,” the investor asserts.

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Data Scientist, Tech Enthusiast and a Crypto Lover