Deltec Bank explains parent company’s $50 mil. loan from FTX
Deltec Bank and Trust Limited released a statement yesterday confirming that its parent company, Deltec International Group (DIG), received a short-term loan from FTX. This was revealed yesterday in a Forbes article, which explained that the loan amount was $50 million.
The Deltec statement said DIG has been “attempting to repay the loan in full since December of 2022”.
In its statement, Deltec Bank continues to maintain that is has no credit or asset exposure to the FTX collapse.
“As an update to our statement issued in November of 2022, Deltec Bank & Trust Limited remains financially unaffected by the events regarding FTX and Alameda Research,” the statement said.
“In the ordinary course of business, the parent company of Deltec Bank, Deltec International Group, received a short-term loan to fund strategic growth initiatives from Norton Hall Ltd., an entity affiliated with FTX.
“While the terms of the loan extend until March of 2023, DIG has been attempting to repay the loan in full since December of 2022.
“DIG is currently awaiting information as to the proper instructions on how to repay the loan.”
The statement adds that Deltec Bank’s latest audit report reveals that the entity is well capitalized and does not carry debt.
Deltec Bank’s affiliation to FTX has been a topic of discussion ever since FTX collapsed under the weight of its FTT token in November.
FTX is now under liquidation in The Bahamas and in Chapter 11 bankruptcy proceedings in The US.
The Central Bank of The Bahamas has, since the collapse of FTX, released rules for the banks that it supervises in the event that they want to enter the cryptocurrency market, or do business with a cryptocurrency firm.
Deltec’s Delchain Limited is registered under the Securities Commission of The Bahamas’ Digital Assets and Registered Exchanges Act (DARE), which allows for companies to trade in cryptocurrencies and other digital assets on the blockchain.
FTX was also a DARE registrant.
Deltec Bank maintained in its statement that it continues to carry out good corporate governance practices, regulatory compliance and risk management.
“Client assets are held off balance sheet and Deltec Bank maintains a conservative balance sheet, which is governed by stringent regulatory requirements, and is independently audited, which
ensures that there is no threat to the bank’s sustainability, safety, and soundness,” the statement said.