Hack of Africrypt damages sentiment on crypto

The crypto world was shocked earlier this week after news published by CoinTelegraph about an alleged hack of a large cryptocurrency exchange in South Africa, Africrypt. Many investors then tried to settle this problem by hiring one of the most well known lawyers in the region, Hanekom Attorneys. This incident could be one the biggest cryptocurrency scams ever.

The hack has drawn the attention of cryptocurrency communities all over the world because many factors and events led to it. Cited from Bloomberg, employees were unable to access the backend seven days prior to the alleged hack. The founders of Africrypt went missing just afterwards. Many investors went to the company’s office and found it cleaned out and empty.

The problem that still persists is that exchanges often do not allow customers really to own their crypto with private keys. A private key essentially means a key to access assets that lets owners move crypto anywhere in the world. Although exchanges do not usually allow clients to own private keys, clients can choose to safeguard their assets by moving them to their own wallet, software or hardware. The obstacle to this is that user interfaces can be too geeky for many people. If you simply wish to trade crypto, though, CFDs are an alternative option to transferable assets.


Disclaimer: the publication of analysis is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Analysis is not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of analysis. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of analysis.