Bitcoin investors in South Africa lose millions in alleged exit scam

Monday 12 June 2020, 12:09 PM AEST - 1 month ago

Bitcoin investors in South Africa lose millions in alleged exit scamBitcoin investors in South Africa lose millions in alleged exit scam 19

Bitcoin investors in South Africa stand to lose millions after the CEO of a Johannesburg-based cryptocurrency investment firm, VaultAge Solutions, was reported fugitive after he cut off all communications since December 2018.

The Polokwane Hawks, who are the investigating authority, in this case, said that several Bitcoin investors cried foul when the now-inoperative VaultAge Solutions CEO, Willie Breedt, made a run for it after pocketing millions of dollars worth of investment.

The cryptocurrency regulations in South Africa are underway precisely for this one reason – to reduce the influence of anonymous entities on the general public that deal in private and unwarranted cryptocurrency transactions. Although the region is relatively pro-crypto and believes it to be the future of money, it has also been a hotbed of some of the biggest cryptocurrency scams.

Bitcoin investors in South African exit scam suspect foul play

A group of over 2,000 Bitcoin investors decided to invest millions of South African rand in Breedts too-good-to-be-true yet unverified investment scheme. Despite not acquiring a valid operating license from the Financial Services Conduct Authority, one investor thought it to be a wise idea to plow in around R6 million in the dubious scheme put forth by VaultAge Solutions.

Today, the investor has no more than R50 in the wallet and a few generic emails from the alleged absconder. Lettie Engelbrecht from Krugersdorp, who is one of the many distraught Bitcoin investors, ...

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