An Infamous South African Bitcoin Entrepreneur Declared Bankrupt, Leaving Investors Facing Total Losses of Over $13m
Willie Breedt, the founder and CEO of VaultAge Solutions, a cryptocurrency trading platform launched in 2018, has been declared bankrupt. Local reports suggest that over $13m in investor funds are at risk due to Breedt’s financial mismanagement.
Investor Complaints Lead to Investigation
Investors in VaultAge Solutions began raising concerns about potential fraud back in May. Following these complaints, the Directorate for Priority Crime Investigation (DPCI) launched an investigation into the company’s activities.
Breedt Goes into Hiding
It has now been revealed that Breedt is bankrupt and has gone into hiding. Approximately 2000 investors are owed a total of R227m ($13.2m) by the company. Simon Dix, one of the largest investors, successfully obtained a court order to seize Breedt’s assets.
According to reports from News24, Breedt was tracked down to a guest house at the Silver Lakes Estate in Pretoria. During a raid, investigators seized multiple electronic devices, including a laptop and a nano stick. Breedt’s South African bank accounts have also been frozen.
Investigations Launched
PricewaterhouseCoopers has been hired to conduct an investigation into VaultAge Solutions and the agents involved in selling cryptocurrency on its behalf. The outcome of these investigations will determine whether investors will be able to recover the funds they are owed.
Similar Scams in the Industry
This incident comes shortly after a UK court wound up GPay Limited, a scam cryptocurrency trading company that defrauded novice investors of £1.5m. The company, operating under the names Cryptopoint and XtraderFX, used false advertising tactics to lure victims, including claims of affiliation with Martin Lewis and entrepreneurs from Dragons’ Den.
As regulatory authorities continue to crack down on fraudulent cryptocurrency schemes, investors are urged to exercise caution and conduct thorough due diligence before investing in any platform.