VaultAge Solutions’ investors are planning to file a lawsuit against the firm’s CEO, who allegedly scammed them out of $17 million worth of crypto, South African news outlet News24 reported on 10 June.
According to the publication, investors in the South African crypto firm have already consulted with lawyers to file a lawsuit against Willie Breedt, VaultAge Solutions’ CEO, for allegedly scamming 2,000 investors out of approximately $17 million. Breedt has reportedly already fled from South Africa to Mozambique in 2019, and according to the South African Department of Home Affairs, he hasn’t returned since then.
After his escape, Breedt reportedly cut all communications with the investors, and only left a single e-mail address, which he used in order to reassure investors that their funds were safe, and would be paid back in full. He further claimed that repayments will start by 30 May, but after not receiving any response from him, the investors decided to consult lawyers, and intend to file an urgent urgent application in the Port Elizabeth High Court this week.
While all of this was going on, the firm’s investors also conducted an investigation of Breedt’s bank account, which previously held around $3.15 million, and found that it was now empty. It also turned out that he was currently under investigation from South Africa’s Directorate for Priority Crime Investigation, also known as the Hawks, for allegedly falsifying proof of payment documents.
As previously reported, 2020 is on the path to becoming a record-breaking year for crypto criminals, who have already stolen around $1.4 billion only in the first five months of the year. Researchers from CipherTrace have warned investors that the majority of crypto crimes so far have been caused by fraud and misappropriation, which accounted for 98% of all stolen funds this year, and not exchange hacks.