According to reports, roughly 2,000 investors contributed to the VaultAge Solutions company but has cryptocurrency losses to deal with now. The platform designed to trade and invest in crypto assets also describes itself as a media and events entity. With speculation about how invested funds were being handled, the South African Reserve Bank began investigations.
Founder of VaultAge Solutions Declares Bankruptcy
The CEO and found of VaultAge Solutions, Willie Breedt, recently declared bankruptcy, making investors distraught considering their cryptocurrency losses. With a total amount of approximately $13.3 million USD, the South African Reserve Bank is stepping in to investigate.
Breedt has been reported to avoiding investors by disappearing into hiding when debt collectors began searching for him. Hoping to recover some or all of their investment funds, investors are determined to collect their cryptocurrency losses from Breedt. Bank accounts that belonged to VaultAge Solutions and Breedt have been frozen during this investigation process.
How These Instances Are Being Handled
A VaultAge investor filed a complaint with Gauteng High Court in Pretoria, following speculation on the growth of his asset. This began a domino effect, initiating an insolvency order and the seizure of 2 bank accounts. PricewaterhouseCoopers has been named as the organization investigating on behalf of the South African Reserve Bank.
Since then, Breedt has been located with a raid in Silver Lakes Estate in Pretoria. This resulted in the successful seizure of a laptop and a nano drive that could have a crypto digital wallet. Authorities are hoping to collect information on where missing funds have been allocated to or others who participated in transfers.
While authorities are stepping in to aid those who have to deal with cryptocurrency losses, investors should be leery. The best course of action is research to ensure that you are not in a position faced with substantial losses.
Cryptocurrency Losses Are Not Uncommon
While cryptocurrency losses are not uncommon in the world market, large-scale deficits are. Considering that digital assets are investments quite like traditional markets, these assets will shift their value considerably over time. Investors are knowledgeable in how gains and losses will occur, but when organization dealings like VaultAge Solutions transpire anxiety increases.
The digital asset market is not immune to its share of fraudulent activity. Over time other instances of theft and suspicious trading activity have occurred, making investors take stock of their portfolios. One of these high-profile scams was the GPay platform run by XtraderFX which separated investors from their digital assets.
How to Protect Yourself
Investors need to ensure the security of their digital assets to avoid large cryptocurrency losses. While you cannot be 100% certain of avoidable losses, by taking precautionary measures, you can cut down the risk. With any investment, individuals should take caution when exploring new avenues for investment choices.
One way to check the legitimacy of a digital exchange platform is the address. Ensure there is the ‘https’ tag before the website address. Another tool is double-checking the security of the exchange platform will give you an indication of a legitimate website. Protect yourself and your assets to prevent cryptocurrency losses.