Former Crypto Firm CEO Willie Breedt Declared Bankrupt

Around 2,000 investors put R227 million into his VaultAge Solutions to invest in bitcoin and other cryptocurrencies.

Willie Breedt, the alleged bitcoin and cryptocurrency scammer, has been declared bankrupt, according to a report by News 24.

Earlier it was reported that around 2 000 investors in Breedt’s defunct company, VaultAge Solutions (VS), stand to lose around R227 million after promises by Breedt to pay out their investments and growth were not honoured.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

According to the news source, one of the biggest investors, who entrusted R7.5 million to Breedt, Simon Dix from Hilton, KwaZulu-Natal, successfully applied for a sequestration order against Breedt on Friday.

The Gauteng High Court in Pretoria granted the order to Dix.

In January this year, Breedt moved from Krugersdorp in Gauteng to the luxury Marina Martinique Estate in Aston Bay near Jeffreys Bay, sources familiar with the matter revealed.

They said that two weeks ago, he went into hiding after some irate investors, allegedly led by a colonel in the South African National Defence Force, called in the services of a group of “debt collectors” to find Breedt and recover their money from him.

Breedt opened a case of intimidation with police in Jeffreys Bay just before disappearing.

While awaiting the verdict of the sequestration application by Dix, investigators managed to track Breedt down at a guest house in the Silver Lakes Estate in Pretoria, according to News 24’s report.

Suggested articles

7 Pharma Stocks You Need to Know in the Race for a Covid-19 VaccineGo to article >>

Hiding his identity

Breedt reportedly booked into the guesthouse under the name of a friend, possibly to try and hide his identity.

Shortly after the order was granted to Dix, the sheriff of the court, assisted by the police, the Hawks and a team of specialist cryptocurrency forensic investigators, raided a house in Silver Lakes where Breedt had allegedly been hiding since mid-June.

They served the court order on him while he was with a medical doctor friend who also resides in Silver Lakes, according to the news report.

During the raid, numerous electronic devices, among others a laptop and nano stick, were confiscated.

The nano stick is a secure storage device which might contain information of where the bitcoin and other cryptocurrencies Breedt traded might be.

Cryptocurrency is usually kept in a crypto wallet, to which only the owner has access.

The group of investors were earlier also granted a court order to freeze two South African bank accounts belonging to Breedt and VS.

Despite rumours that Breedt was arrested on Friday, News 24 confirmed that this was not true.

In the meantime, the South African Reserve Bank has appointed PricewaterhouseCoopers to launch an investigation into VS and all agents who were involved in selling cryptocurrency on behalf of the company, the report said.

Got a news tip? Let Us Know