South African crypto hustler arrested, breaks down in court

Gold Standard Bank (GSB) promoter Neil de Waal broke down in tears on Monday as the Benoni Magistrates Court set his bail at R15,000 with strict bi-weekly check-ins, Netwerk24 reports.

“Captain” De Waal is a self-proclaimed network marketing guru, offering coaching and mentorship services with the promise of financial freedom.

He also describes himself on Instagram as a lifestyle and wealth entrepreneur and crypto enthusiast.

His Instagram features several photos of him promoting GSB and a related “metaverse” NFT scheme, Lydian World. Both fall under the banner of GS Partners (GSP). GSB is of no relation to Standard Bank South Africa.

The G999 cryptocurrency and a company called Swiss Valorem Bank are also linked to GSP.

Several US state regulators have declared GSP a misleading crypto scheme, and South Africa’s Financial Sector Conduct Authority (FSCA) issued a warning against the outfit in November last year.

According to court documents MyBroadband has seen, De Waal was arrested on 28 May for fraud after an investor alleged that he took her money under false pretences.

The Benoni investor alleged she had transferred R315,000 to De Waal’s personal account in May last year, losing everything despite his promises of high and regular returns.

Two cases have also been opened against De Waal in Cape Town.

Neil de Waal flying first class to Dubai. Photo: Instagram/neildewaal82

The court documents show that bail was initially set at R420,000. The state prosecutor opposed bail, saying De Waal was a flight risk.

They pointed to his social media pages showing him jet-setting all over the world, and said they had to use a private investigator to track him down.

The warrant for De Waal’s arrest was issued in December 2023, but police only managed to arrest him upon return from a holiday in Bali over five months later, Netwerk24 reported.

The state also pointed to the additional fraud cases against De Waal, saying there was a likelihood he would commit additional schedule 1 offences if released.

De Waal’s attorneys argued that his passport had already been confiscated and that he was responsible for the care of his elderly father.

The magistrate granted bail of R15,000 but ordered De Waal to check in twice per week at the Kirstenhof police station.

Neil de Waal and Brendon Earp-Jones at the airport. Photo: Instagram/neildewaal82

De Waal’s Instagram page regularly features photos of him travelling with Brendon Earp-Jones, who was heavily involved in promoting GS Partners in South Africa.

In one post, De Waal described Earp-Jones as his “brother” and said it was great travelling with him again.

“It’s insane how far we’ve come in last two years,” a post dated 27 July 2022 said.

While the FSCA and other regulators issued warnings about GSP in 2023, their warnings came years after several individuals raised the alarm about GSB, its cryptocurrency G999, Lydian World, and all its related schemes.

For their efforts, they were slapped with costly lawsuits.

During this time, GSP also paid South African celebrities like Victor Matfield, Lucas Radebe, and Herschelle Gibbs to promote their schemes.

Internationally, they used icons like boxing legend Floyd Mayweather.

Neil de Waal and others at GSB event at the Cape Town International Convention Centre. Photo: Instagram/neildewaal82

In a 2021 summons MyBroadband has seen, Brendon Earp-Jones and four others, including GSB owner and German millionaire Josip Heit sued three South Africans for defamation and loss of income.

The three defendants — Louis Nel, Francois Harris, and Gareth Grobler — had a small YouTube channel called G-Crypt on which they discussed various crypto and blockchain-related topics.

Those familiar with South Africa’s cryptocurrency space will recognise Grobler’s name.

He founded Ice3x, one of South Africa’s oldest cryptocurrency exchanges. Ice3x collapsed near the start of the crypto market downturn in 2021.

Earp-Jones and his four co-applicants took issue with seven specific videos in which the defendants discussed whether G999 and GSB were scams.

Despite each of the offending videos only getting between 800 and 2,800 views, the plaintiffs alleged they had caused damages to the tune of R476.3 million, excluding interest.

Nel, Harris, and Grobler filed a counter-claim to have GS Partners declared an illegal scheme.

GSP tried to settle the case in December, offering that each side pay its own costs and sign a non-disclosure agreement. Nel, Harris, and Grobler declined. The case proceeds.

Neil de Waal and Brendon Earp-Jones. Photo: Instagram/neildewaal82

Neil de Waal in Dubai. Photo: Instagram/neildewaal82

Neil de Waal at the Wall Street Bull. Photo: Instagram/neildewaal82