Israeli fintech company, Vesttoo, has announced the appointment of Ami Barlev as interim CEO, stepping in for Yaniv Bertele, who led the firm during a false collateral scandal.
Barlev brings a wealth of experience from senior roles in various Israeli and Nasdaq-listed companies, startups, and tech-focused fields such as AI, communications, aviation, and real estate.
The company emphasized Barlev’s expertise in corporate governance, crisis management, business development, and navigating complexities.
Vesttoo, partially backed by Banco Santander’s fintech venture capital arm Mouro Capital, recently took measures in response to its internal investigation.
Last week, the company revealed plans to cut around 75% of its workforce and consider the removal of Yaniv Bertele.
The investigation delved into events surrounding a fraudulent letter of credit, which had been used in multiple transactions.
The firm has been actively engaged in discussions with potential investors to secure alternative collateral for its clients.
Discovering the misuse of fake letters of credit on its platform prompted these measures.
Vesttoo, which leverages artificial intelligence to bridge the gap between the insurance industry and capital markets, is also in close contact with global regulatory bodies.
Barlev expressed dedication to finding solutions for clients and partners worldwide.
He said, “We are working around the clock in order to provide solutions for our customers and partners around the world, and we will work intensively to restore the company’s activities.”
He reaffirmed faith in Vesttoo’s potential value and the company’s ability to surmount the ongoing challenge.
“We believe in the value that Vesttoo can still provide. I am confident that by completing the ongoing audit thoroughly and comprehensively we can overcome this significant challenge and get back to work.”
Emphasizing the importance of a comprehensive audit, Barlev aims to restore the company’s operations swiftly.
Vesttoo’s core offering involves insurance-linked securities, an innovative form of reinsurance.
These securities rely on collateral, often in the form of letters of credit. Ensuring the validity of these securities is crucial, as their integrity impacts insurers’ ability to fulfill claims and manage risks.
As Vesttoo navigates this transformative phase under new leadership, the company’s actions will be closely watched within the industry, and its journey to overcome challenges could hold valuable insights for the fintech sector at large.
