Africa: crypto investment company disappears with $1.6 million

In Africa, the operators of the crypto investment company Clé du Succès appear to have disappeared with $1.6 million. Among the hundreds of Central African Republic (CAR) residents defrauded are lawmakers and senior government officials.

Summary

• Africa: the crypto investment company scam that promised 20% returns
• Africa: Bitcoin legal tender in CAR
• Bitcoin’s surge to $35,000

Africa: the crypto investment company scam that promised 20% returns

In Africa, and more specifically in the Central African Republic (CAR), the case of the crypto investment company Clé du Succès is causing a stir, with traders apparently disappearing with the loot of USD 1.6 million.

The company allegedly only launched last September, luring potential investors with the promise of a 20% return on their cryptocurrency investment.

Not only that, but the trust placed in the current victims stems from the fact that Clé du Succès is a duly registered company with a tax code.

In reality, once the funds had been collected, the company turned out to be a fraudulent project and abruptly closed its doors on 8 October, with the traders vanishing into thin air with the loot.

Among the hundreds of CAR residents who fell victim to the apparent scam were high-profile figures, including lawmakers and senior government officials.

Africa: Bitcoin legal tender in CAR

The Central African Republic has become the first country in Africa to adopt bitcoin legal tender from April 2022.

The law was signed directly by President Faustin Archange Touadera, although even at the time he did not seem to be very transparent about the country’s future plans and prospects.

However, it appears that the bitcoin law was later overturned by a court ruling.

And so all of Touadera’s efforts were thwarted. This repeal of the law means that cryptocurrency investors who fall victim to scams similar to Clé du Succès have no legal recourse.

This example is very different from the development of bitcoin as a legal currency in El Salvador.

Bitcoin’s surge to $35,000

Since the beginning of this week, Bitcoin has hit $35,000, and according to data from venues such as the CME and Hong Kong’s CSOP Bitcoin Futures ETF, institutional investors appear to be driving this price rise.

Specifically, open interest in the CME’s Bitcoin product recently reached a significant milestone of 100,000 BTC, equivalent to $3.4 billion. This means that institutional investor interest in bitcoin is growing strongly.

Not only that, but the CSOP Bitcoin Futures ETF in Hong Kong was no different. In fact, in a single trading session, it apparently achieved a trading volume of $22.37 million, supported by capital inflows of $17.64 million.

Again, this is a record performance, reflecting the growing interest from institutional investors.

In addition to these figures, there is also positive sentiment towards spot Bitcoin ETFs, which has fuelled the rise in BTC, which is currently worth $34,182.

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