Investors who lost millions in a crypto investment scam in South Africa are worried that their money may have been lost forever.
The scam was engineered by one Willie Breedt, the CEO of the crypto investment firm, VaultAge Solutions. Breedt is said to have pocketed around R277 million ($16.3 million) from over 2,000 investors with a promise of weekly returns on their deposits.
The CEO and his firm didn’t honor the agreement, prompting investors to move to recoup their money. However, efforts to this effect seem to have hit a brick wall as it dawns on them that Willie Breedt may have actually swindled them of their money.
Among the 2,000 investors is Simon Dix who had investment around R7.5 million ($450,000) in the scheme. Simon managed to obtain a sequestration order from a court giving the investors the right to take possession of Breedt’s property to reclaim their money.
Breedt Went Into Hiding
Apparently Breedt took off and went into hiding two weeks ago after the investors showed up accompanied by debt collectors. He even went ahead to lodge a case against the “intruders,” citing intimidation by the investors. While the court mulled over the sequestration order, investigators managed to trace Breedt to his hideout around the Silver Lakes Estate in Pretoria.
Turns out, the scammer had used his friend’s names to book into the guesthouse. During his arrest, numerous electronic devices were recovered at the scene, including a nano stick. Hopefully, the storage device may lead forensic experts to where Breedt is possibly hiding the loot.
Accounts Frozen
Earlier on, investigators had obtained a court order to freeze two of Breedt’s accounts. Reports have it that Breedt has been declared bankrupt.
The South African Reserve Bank has since moved to launch an investigation into the matter. PricewaterhouseCoopers has been appointed to lead investigations into VaultAge Solutions and its agents.
