The Bermuda Monetary Authority (BMA) has joined forces with White Rock Insurance (White Rock Bermuda) to take action in the Supreme Court of Bermuda over alleged fraud involving Israeli fintech Vesttoo.
As part of this move, the parties will seek “maximum recovery” for the (re)insureds affected by the alleged fraud involving Vesttoo-linked segregated accounts, also known as Vesttoo Cells.
BMA and White Rock supported the Bermuda Supreme Court’s prospective appointment of Charles Thresh and Michael Morrison as the joint provisional liquidators (JPLs) for White Rock Bermuda relating to the affected Vesttoo Cells.
White Rock Bermuda’s board of directors and management and the JPLs will also merge their resources for addressing the issue.
The BMA release noted: “This action applies only to the impacted Vesttoo Cells.
“White Rock Bermuda continues to operate in the ordinary course of business, and this action has no effect on any other cells or White Rock Bermuda clients.”
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Earlier this month, Vesttoo and its several affiliates filed proceedings under Chapter 11 of the US Bankruptcy Code.
The bankruptcy move came after White Rock received a temporary restraining order from the US District Court Judge Paul Engelmayer to freeze the majority assets of Vesttoo.
White Rock had previously accused Vesttoo of providing nearly $2bn of fraudulent letters of credit (LoCs).