“This entity was offering exceptionally high and unrealistic returns akin to those offered by unlawful investment schemes commonly known as Ponzi’s,” the FSCA said in a statement on Thursday. “The public is urged to understand that unrealistically high returns suggests that the investment scheme is likely to be fraudulent.”

South African Brothers Vanish, and So Does $3.6 Billion in Bitcoin

Johannesburg-based Africrypt launched in 2019 and was run by South African brothers Ameer and Raees Cajee. They promised a minimum return of five times the amount invested, according to a police statement by one investor seen by Bloomberg. In the end, he invested close to 1.8 million rand ($126,000), the statement said.

Lawyers acting on behalf of a group of clients say the brothers and Bitcoin worth as much as $3.6 billion have gone missing.

Calls to the brothers’ cell phones were immediately directed to a voicemail service. The company website is down.

South Africa Plans to Regulate Crypto Trading in Phased Manner

The matter has been reported to the Hawks, a unit of South Africa’s police force, for investigation, a representative said by email. It has not yet determined where the case would be prosecuted, the representative said.

The FSCA has taken steps to have crypto assets declared financial products as theft related to crypto assets pile up in South Africa.

“The authority is concerned over the large number of scams being perpetrated by persons purporting to provide the crypto asset to the public,” it said. “The public must be aware of the very large number of unscrupulous players in this sector.