content material comming from www.infosecurity-magazine.com
An notorious South African Bitcoin entrepreneur has been declared bankrupt, leaving traders dealing with whole losses of over $13m, based on native studies.
Willie Breedt was the founder and CEO of VaultAge Options, a cryptocurrency buying and selling platform that was launched in 2018.
Again in Could, traders within the platform started to complain of fraud and investigators from the nation’s Directorate for Precedence Crime Investigation (DPCI) have been despatched in to search out out what had occurred.
Now it has emerged that Breedt, who’s presently considered in hiding, is bankrupt, with round 2000 traders owed round R227m ($13.2m).
One of many largest traders within the scheme, Simon Dix of Hilton, who was owed R7.5m, efficiently utilized for a court docket order to grab Breedt’s property. According to News24, police and investigators tracked Breedt all the way down to a visitor home on the Silver Lakes Property in Pretoria.
Through the raid they’re stated to have seized a number of digital units together with a laptop computer and a nano stick.
Breedt’s South African financial institution accounts have additionally been frozen and PricewaterhouseCoopers has reportedly been employed to launch an investigation into VaultAge and the brokers promoting cryptocurrency on its behalf.
It stays unclear whether or not traders within the firm’s schemes will get the cash they’re owed.
The case comes simply days after a UK court docket wound up GPay Restricted, a rip-off cryptocurrency buying and selling firm which defrauded novice traders.
The corporate, which traded below the names Cryptopoint and XtraderFX, is said to have made off with £1.5m. It used false promoting claiming affiliation with Martin Lewis, founding father of MoneySavingExpert, and entrepreneurs from the hit TV present Dragons’ Den to influence victims to half with their funds.