CEO of VaultAge Solutions, a South African cryptocurrency company, Willie Breedt went bankrupt and spent some time in hiding after being accused of defrauding around 2,000 investors, as was reported by CoinDesk. The Pretorian Gauteng High Court issued a sequestration order on Friday, which basically meant that the CEO was forced into bankruptcy.
Breedt went into hiding after he defrauded the investors who held their cryptocurrency assets in VaultAge Solutions on the sum of approximately $16.3 million. Apart from the court order issued, the investors also took action and are working with debt collectors to recover the lost funds.
After the CEO was found staying at a guest house in Pretoria, he was handed the court order, after which law enforcement agencies and investigators arranged a raid on the premises at the Silver Lakes Estate, during which electronic equipment was seized.
VaultAge Solutions will from now on be investigated by PricewaterhouseCoopers, as decided by the central bank of South Africa, the South African Reserve Bank. Apart from investigating the company, the bank also arranged an investigation of the agents who were selling cryptocurrency for the firm.