Vesttoo

The incoming CEO said initial recommendations from investigators had been adopted in full.

White Rock’s petition to the New York Southern District Court stated that, "on information and belief, Vesttoo intends to remove all or substantially all funds from its US bank accounts”.

New CEO Ami Barlev – who has a background in tech, AI, comms and real estate – said he took the role at an “extremely difficult moment” for the InsurTech.

As part of a restructuring, Vesttoo is liquidating its collateralized insurer in Bermuda, but continues to operate its branches in New York, London and other territories.

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The firm has written to brokers and counterparties urging them to continue working with it to deliver solutions.

The company said it had completed ‘Know Your Customer’ checks on all parties, as the alleged fraudulent LOC crisis continues.

The company has already seen submissions from MGAs that are potentially looking for a new fronting partner.

The CEO said he expects the total number of policies from the October takeout to “be substantially lower than 100,000”, roughly around 30% to 50% of the approved figure.

The co-founders will be on paid leave until a final decision is taken.

Issues with faked letters of credit are not limited to one banking provider, sources said.

The embattled ILS platform took the decision in an attempt to reassure its trading partners.