Investors head to court after losing millions in cryptocurrency scheme

Investors head to court after losing millions in cryptocurrency scheme

- A number of heavy investors have headed the to High Court after a CEO disappeared with millions of their money

- Willie Breedt, the defunct CEO of VaultAge Solutions, appears to have fled the country after investors lost R277 million combined

- The owner of the cryptocurrency scheme company is also under investigation by the Hawks in Limpopo

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Investors have filed an urgent application with the High Court in Port Elizabeth this week against Willie Breedt, the defunct CEO and owner of the cryptocurrency scheme, VaultAge Solutions (VS).

2 000 investors who had paid up to R277 million into the accounts of Breedt's company to purchase cryptocurrency fear their money is gone.

Gordon Kayser of GTA Kaysor Attorneys in Pretoria, assisted by investors Annette Veldsman, met with advocates on Tuesday to discuss a class action.

Veldsman said:

"We aim to have the application where we will seek relief from the court before the High Court at the end of the week"
Investors head to court after losing millions in cryptocurrency scheme

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Breedt is feared to have gone under the radar after he disappeared while on holiday in Mozambique last December. He broke off contact with investors shortly after he left the country.

Despite allegedly attracting over 2 000 investors, VaultAge Solutions was not registered with South Africa’s Financial Services Conduct Authority.

VS was founded in 2018, allegedly offering weekly returns on customer deposits through cryptocurrency mining and trading and accepting deposits from $50.

In January, after Breedt was hospitalised for a short while, he closed his offices and moved from Featherbrooke Estates in Krugersdorp to the well-known Marina Martinique Estate in Aston Bay near Jeffreys Bay.

Following the sudden move, all his clients received an email saying their money was safe and would be repaid.

The payments were supposed to start in May but investors received nothing. The Hawks in Limpopo are currently investigating Breedt and his company. This is after he falsified a proof of payment document sent to an investor.

It is alleged that Breedt's money problems started when the cryptocurrency markets hit a slump last November.

An investigation by VS clients revealed that one of Breedt's accounts, which previously held $3.15 million (R52 million), was now empty.

Breedt has not returned to the country since leaving for Mozambique on 21 December.

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