Vesttoo has revealed that the source of its now infamous LOC fraud scandal is external to the company.
The Israeli-FinTech confirmed in the statement released by the company confirming that no employees of the company were involved in any fraudulent activity.
The comments also stated that the federal court in New York has removed the temporary restraining order that froze the company’s accounts on the 15th of August, to complete a positive day for the firm.
The statement from the firm read: “Vesttoo can confirm that the federal court in New York has removed the temporary restraining order freezing the company’s accounts on the 15th of August, and the Aon White Rock legal case was placed on the court’s suspense docket.
“The courts in Israel have followed suit, removing the temporary restraining order from the company’s accounts in Israel as well. The proceedings moving forward will fall under Chapter 11, which is aimed at providing the company with the ability to restructure the business and rebuild while pursuing legal action.
“We can also confirm that the investigation into the fraudulent LOCs used as collateral in the company’s transactions is in advanced stages, and the company hopes to be able to publish results in the near future.
“What we can already confirm is that the source of the fraud is external to Vesttoo, and no employees of Vesttoo UK, US, Bermuda, Japan, or other jurisdictions outside of Israel are under any suspicion of being involved in the fraudulent activities.
“We can firmly assure that Vesttoo’s remaining core team of professionals is free of any suspicion, and our company continues to operate because of these talented individuals.”
The statement also references Vesttoo’s decision to file for Chapter 11 bankruptcy protection amidst the ongoing fraud scandal.
It confirms that proceedings will be continuing under that protection, as it looks to restructure the business and rebuild following the saga.
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