The assets of troubled insurtech Vesttoo have been frozen by a New York court, which granted the request of Aon subsidiary White Rock.
The injunction is the latest in the White Rock Insurance (SAC) Ltd., v. Vesttoo LTD et al case, through which White Rock is claiming against Vesttoo after the insurtech was accused of LOCs (letters of credit) fraud. White Rock had facilitated reinsurance transactions that were collaterised using the LOCs provided by Vesttoo.
A report by CTech said the freezing comes ahead of a court hearing slated for August 15.
Separately, Vesttoo will be going after those responsible for the LOCs fraud.
Interim chief executive Ami Barlev was quoted by CTech as saying in a statement: “We have learned that a number of factors, external to the company, led directly to the current crisis, including the involvement of certain foreign banks and financial institutions.
“We will decisively pursue legal actions against all parties who caused harm to the company and its clients, and will take all necessary steps to recover all and any damages, and we will vigilantly protect our partners, customers, and our employees.
“At this stage, we can firmly assure that Vesttoo’s remaining core team of professionals, who are of the highest calibre globally in the fields of insurance, capital markets, and technology, are free of any suspicion, and our company continues to operate because of these talented individuals.”
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