Cryptocurrencies

VaultAge investors to file class-action lawsuit over $17M fraud

Investors of digital currency scheme VaultAge Solution are set to have their day in court, after preparing a lawsuit against the company’s former CEO and owner in a bid to recover 277 million rands (approx. US$17 million).

The South African based scheme has been the subject of investor fury in recent months, after CEO and owner Willie Breedt vanished owing millions to investors.

According to reports in local press, VaultAge investor Annette Veldsman and her attorney Gordon Kayser of Pretoria-based GTA Kayser Attorney are in discussions with advocates about filing the class action against VaultAge and the former CEO.

Veldsman said the filing was imminent: “We aim to have the application where we will seek relief from the court, before the High Court at the end of the week.”

It is thought as many as 2,000 investors may have been taken in by VaultAge with its digital currency investment scheme, with assurance to purchase digital currencies through the program.

The scheme has since closed, with Breedt still at large—and investors still significantly out of pocket.

Fears were raised after Breedt cut contact with investors and fled to Mozambique in December, in what was described as “a holiday.” The following month, VaultAge offices were shut down, and investors sent an email promising to repay the money they are due.

Breedt then went on to tell local press he would repay the funds by May 30, but has so far been silent on the matter.

The lawsuit will run simultaneously with a criminal case against Breedt on allegations of forgery concerning a proof of payment document sent to one particular investor.

The case is only the latest alleged scam to afflict investors in the digital currency space, with instances of fraud reportedly on the rise across the world.

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