CEO of Alleged $16M Cryptocurrency Scam Declared Bankrupt

Willie Breedt, a South African national accused of stealing up to $16.3 million from around 2,000 investors via his VaultAge Solutions scheme, has reportedly been forced into bankruptcy by a local court.

According to a recent report from News24, the sequestration order was initiated on July 3 by Simon Dix — one of VaultAge’s largest investors, who entrusted Breedt with 7.5 million South African rand, or $440,000.

VaultAge Solutions was founded in 2018, promising weekly returns on customer deposits through crypto mining and trading and accepting deposits starting from $50. The scheme’s investors have allegedly received only 1% of expected gains.

Breedt was hiding in South Africa, not Mozambique

Before going into hiding about two weeks ago, the VaultAge operator opened a case of intimidation with police in Jeffreys Bay.

A group of debt collectors hired by angered investors tracked him down at a guest house in the Silver Lakes Estate in Pretoria, which he booked into using a fake name. Previous reports suggested that VaultAge CEO fled the country for Mozambique back in December 2019.

Shortly after the sequestration order was granted, South Africa’s Directorate for Priority Crime Investigation, known as "the Hawks," raided the guesthouse, confiscating a laptop and a Ledger Nano crypto hardwallet which could potentially contain some of the missing funds. According to News24, Breedt has not been arrested. 

Additionally, the South African Reserve Bank has reportedly assigned PwC to lead an investigation into VaultAge and all agents who might have performed transactions on its behalf.

Breedt’s bank account, which earlier held $3.15 million, was reportedly emptied earlier this month.