Update: Tens of thousands of Glint customers left in the dark as administrators take control

By Oliver Smith on 23rd September 2019

Fintech

Glint’s app reportedly encouraged customers to “top up” their accounts over the weekend.

Update: Tens of thousands of Glint customers left in the dark as administrators take control
Image source: Glint CEO Jason Cozens/Twitter.

Customers of the gold payment app Glint Pay have been left in the dark since Friday when AltFi exclusively revealed that the firm had fallen into administration earlier in the week, with no communication from either the company or its administrators.

On Friday evening around 7.30pm the Financial Conduct Authority placed an update on its website alerting customers to the administration and advising them that their funds are not protected by the FSCS—so far this is the only public statement that the company is in difficulty.

Glint’s website, social media accounts and mailing lists have all remained silent since Friday, with no direct messages to the “tens of thousands” of customers the company claims to have.

The company’s app, however, continued to send notifications over the weekend, according to customers who spoke to AltFi, encouraging them to “top up” their accounts.

On Glint’s website, which makes no mention of its administration, the company claims “You can trust in Glint” and outlines the “regulatory standards” Glint meets and that “the FCA ensures that Glint is a reliable and trustworthy company that is backed by its own assets.”

“Government-issued fiat currencies such as your GBP, USD and EUR are held in segregated and safeguarded accounts by Tier 1 bank Lloyds Bank.”

While customer funds are not covered by the FSCS, the FCA’s update confirmed that customers' funds are covered by a process known as "Safeguarding" designed “to protect customer money if a firm fails in a disorderly way”, which prioritises the returning of customer funds over Glint's other creditors.

Given the administrators at FRP Advisory LLP have now taken control of the company and are yet to issue a statement, it’s unclear what "Safeguarding" means in relation to customer deposits at this time.

Glint's path to administration

In January AltFi revealed a flurry of senior departures from Glint’s senior management team, including COO and Co-Founder Ben Davies.

No reason for these departures was given, however, according to Companies House on 22 January Glint CEO Jason Cozens authorized a loan on behalf of the company from Brahma Finance Limited.

While the size of the loan is not known, documents on Companies House indicate that Brahma was able to demand repayment from Glint at any time, with the ability to appoint administrators should the loan not be repaid.

In July Glint reported having closed a £5m funding round from alternative asset manager Sprott, followed by its US launch that month.

On 18 September, according to the FCA, Glint filed for administration.

Other investors in Glint who have collectively poured over £15.2m into the company include Bray Capital, Tokyo Commodity Exchange, NEC Capital Solutions and Steve Baker, the former Brexit Secretary, Chairman of the European Research Group and Conservative MP.

AltFi has reached out to FRP Advisory LLP, Glint Pay and Jason Cozens for comment.