Zug at Center of Global Crypto Scam: Vitae Defrauds 223,000
The Belgian city of Zug has found itself at the centre of an international cryptocurrency scam, known as Vitae. Belgian authorities have seized millions in cash, cryptocurrency, and luxury cars, with around 223,000 people from 177 countries reported to have been defrauded. The Swiss Federal Prosecutor's Office is assisting Belgian investigations, while local political and social reactions in Zug have raised concerns about security and community impact.
The Vitae platform promised quick riches to its members, with its frontman, Z., posing with a former Belgian football national goalkeeper, Jean-Marie Pfaff, to lend credibility to the scheme. The criminal group operated through a company based in Zug, managed by a law firm in the city. The firm has denied any wrongdoing and is preventing legal assistance to Belgium.
The scam allegedly funnelled profits through trust structures managed by the law firm. 'We Are Vitae', an organisation claiming to represent 20,000 users, insists that the token and platform were not a scam. However, on June 22, 2021, Belgian authorities raided properties linked to Vitae, seizing 1.1 million euros in cash, 1.5 million euros in cryptocurrency, and 17 luxury cars. Z. was a board member of the Zug-based company since late 2019, with a Belgian lawyer and a Briton joining the board four months later.
The Vitae case has highlighted concerns about security and community impact in Zug, with local political and social reactions demanding safety and participation regarding asylum accommodations and infrastructure projects. While the Swiss Federal Prosecutor's Office is assisting Belgian investigations, it is not currently conducting its own criminal proceedings. The fate of the defrauded investors and the future of the Vitae platform remain uncertain.
