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Investors are suing CEO for alleged $ 17 million cryptocurrency fraud

June 10, 2020

Investors in the South African cryptocurrency company VaultAge Solutions They plan to file a lawsuit against the company’s CEO, Willie Breedt, for allegedly cheating 2,000 investors for around $ 17 million.

Breedt flees abroad

On June 1, Cointelegraph reported that Breedt had probably fled from South Africa to Mozambique in December 2019. The South African Home Office said it has not returned since then.

After escaping to Mozambique, Breedt reportedly interrupted any communication with his investors, except for an email attempting to reassure them that their funds were safe and that the money would be returned to them. The local news agency News24 claims that Breedt has indicated that payments will start before May 30.

Investors are suing CEO for alleged $ 17 million cryptocurrency fraudInvestors are suing CEO for alleged $ 17 million cryptocurrency fraud

After receiving no answer, investors are now consulting lawyers to initiate proceedings against Breedt. You intend to file an urgent petition to the Port Elizabeth Supreme Court this week. An investor, Annette Veldsman, said:

“Our goal is to file a motion to seek relief from the court before the Supreme Court later this week.”

Breedt left an empty bank account

The South African Directorate for Priority Investigation, also known as Hawks, is also investigating criminal proceedings against the accused for allegedly falsifying proof of payment.

While Breedt himself didn’t answer any questions about his whereabouts or payments, the investigation found that his bank account, which previously contained $ 3.15 million, was now empty.