Vesttoo Alpha P&C, the Bermuda entity at the centre of the troubled insurtech’s operations, is being liquidated.

According to a statement released by the Bermuda Monetary Authority today, it “issued proceedings in the Supreme Court of Bermuda, Commercial Court jurisdiction, for the appointment of Joint Provisional Liquidators with respect to Vesttoo Alpha P&C.”

The statement went on to say that the court appointed liquidators — Charles Thresh and Michael Morrison, of Teneo (Bermuda) — on August 2.

Vesttoo, which aims to be the eBay of reinsurance, has been dealing with the possibility that fake collateral has been used on its platform. It has confirmed problems but has not disclosed the amount of collateral that may be fraudulent.

The majority of the company’s employees globally have been dismissed, and US law enforcement has been brought in to investigate, according to reports.

Some insurers are scrambling to assess their exposure to Vesttoo. AM Best has put an insurer under review with negative implications because of problems at the Tel Aviv-based start-up.

Vesttoo was founded in 2018 and registered a collateralised insurer in Bermuda in 2022.

The Bermuda entity, Vesttoo Alpha P&C, has been identified as being central to the whole operation.

Some local employees working for Vesttoo resigned as the possibility of fake collateral was first reported. The Bermuda entity was represented locally by a law firm before liquidation.

Teneo said in a statement: “We will, among other matters, realise the company’s assets for the benefit of relevant stakeholders and conduct investigations into the company’s affairs”.