The Rise and Fall of Migom Bank: An Update on the Ongoing Saga
We have been closely monitoring the rise and fall of Migom Bank, a neobank that has captured attention due to its tumultuous journey. Many readers have requested updates on this intriguing story, so we conducted an investigation to gather the latest information. Our team reached out to regulators in Dominica, as well as the bank’s clients, shareholders, lawyers, and accountants. Through this process, we have gathered enough information to provide you with this follow-up report.
A Stalemate Dependent on Austrian Courts
The battle to remove Thomas Schaetti, who has held sole control of Migom Bank and its holding company for the past 1.5 years, is currently at a standstill. The resolution now rests with the courts in Austria. Although a court decision is expected soon, it may take weeks or even months due to the unpredictable nature and backlog of cases in the Austrian court system.
Attempts to Thwart New Investors
Thomas Schaetti has reportedly gone to great lengths to oppose the legitimate transfer of shares to new investors. His efforts include prank calls and threats to the attorneys representing these investors. This raises an important question: why would someone whose responsibility is to save and develop the failing bank work so hard against its potential rescue? There are even rumors that Schaetti has facilitated false police reports and smear articles in online media.
Suspicions Surrounding Alleged Transfer of Assets
An apparent smear article claimed that one of Migom Bank’s original founders transferred EUR 120 million into a crypto cold wallet, painting him as a villain. This caught our attention, leading us to review official financial statements filed by the bank’s holding company with the United States Securities and Exchange Commission (SEC). We also requested financial statements submitted by Schaetti to the financial regulatory authorities in Dominica.
Surprising Financial Statements
Our initial investigation has revealed surprising findings. According to the filings with the SEC, certified by Thomas Schaetti, the bank’s assets at the end of 2022 amounted to approximately EUR 20 million. The filings in Dominica indicated an even smaller amount. This raises questions about the alleged EUR 120 million transfer. Was it a fabrication intended to vilify someone while diverting attention from the real issue of missing client funds? Or did Schaetti accidentally reveal a snippet of truth in an attempt to shift blame onto someone else? Our investigation suggests that large amounts of client funds were moved off the balance sheet, potentially to another company solely owned by Schaetti in Luxembourg.
The Plot Thickens
The story continues to unfold, and we have requested disclosures from regulatory and tax authorities that may shed further light on this developing situation. Meanwhile, Migom Bank’s disgruntled clients are taking legal action to recover their holdings with the assistance of the legal system and regulators in Dominica. The bank’s American shareholders have also realized that their stock is plummeting due to the actions of those responsible for its growth. If the SEC and FINRA decide to terminate the publicly traded status of the holding company, the stock, once valued at over $100 per share, could become worthless.
Potential Class Action Lawsuit
Over sixty shareholders of Migom Global Corp, the holding company that owns Migom Bank, are actively negotiating with their lawyers. They are likely preparing to file a class action lawsuit in US Federal Court seeking disclosure of relevant information and potential recovery of significant damages inflicted on a company that once had a market capitalization exceeding $700 million.
Continuing Investigations
We will closely follow this developing story and report the outcome of our investigations as we receive relevant documents and witness statements.
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