A self-styled cryptocurrency investor's home in Ladysmith was looted and set alight on Wednesday, allegedly by angry investors demanding payment.

The investor has been described as a Bitcoin Wallet manager.

Police spokesperson Colonel Thembeka Mbhele told News24 the torching of the house followed an incident on Tuesday when the man's employees were held hostage allegedly by a group of people demanding payment.

"On Tuesday, employees were taken hostage by a group of people at their workplace. The workers were later rescued by the police who had been summoned to the scene. The employees were then taken to the police station, the mob followed and protested outside," said Mbhele.

Mbhele added the police were investigating the matter.

According to the Ladysmith Gazzette, a mob went to the investor's home on Wednesday, hoping to get their money back. When they realised no one was home they allegedly started looting the property before setting it alight.

The publication also reported that the investor had been interviewed on a local radio station in Ladysmith on Tuesday where he said he had received reports of Bitcoin Wallet account holders accounts being hacked.