South African billionaire businessman, Priven Reddy, is facing fresh fraud changes from an unhappy user of his now-defunct cryptocurrency exchange, Kryptoro.
According to screenshots, voice notes, and confidential documents shared with Coinfomania, Alex Naidoo had paid R750,000 (appr. $45400) for the purchase of an equivalent amount of Bitcoin from Kryptoro. The funds’ transfer allegedly followed a physical meeting with Reddy in which he agreed to sell that amount as the minimum.
To date, The said BTC hasn’t been delivered to the client, even though Naidoo transferred the funds to the Kryptoro Holdings bank account in October 2019. Requests for a refund have met deaf ears from both Kryptoro and its billionaire CEO.
Local reports also suggest that this isn’t the first time Priven Reddy’s integrity has been called into question by displeased clients and investors. In August 2019, a family trust reportedly filed charges against the entrepreneur over an R1.2m (about $72,500) debt accumulated for investments into the Kryptoro Exchange, which never really took off.
Regarding the current development, Coinfomania has met little success trying to reach out to the company via LinkedIn, its website, and official email addresses.
The Kryptoro story
Kryptoro was a brainchild of Kagiso Interactive, a giant tech development company led by Priven Reddy. The plan was to build a user-friendly cryptocurrency exchange, powered by the Kryptoro (KTO) Token, giving South African investors access to the global cryptocurrency market.
A press release dated August 2019, two months before Reddy’s business with Naidoo, claimed that Kryptoro was on track to raise $7 million in a seed round. The funding was to come amid an ongoing token sale which also attracted many investors but ultimately proved to be a failure.
Charges filed against Kryptoro by the family trust mentioned earlier alleged that not only did the platform fail to launch in September 2019, but Kryptoro had also defaulted on paying an agreed 1% quarterly profit dividends from three consecutive quarters.
Priven Reddy is described in the same report as a “flashy businessman, known for his high-flying lifestyle and a penchant for sports cars.” He supposedly heads five companies that boast assets worth R4bn ($242 million). Being a popular and rich figure in hometown, Durban, South Africa apparently influenced public opinion about doing business with and investing in Kryptoro.
But, as time has revealed, such misplaced confidence in popular figures could backfire with unsuspecting investors and business partners having to pay the ultimate price.