Glint administrators confirm customer cash is safe, but accounts remain locked

By Oliver Smith on 1st October 2019

Fintech

A review of Glint’s gold supplies is ongoing.

Glint administrators confirm customer cash is safe, but accounts remain locked
Image source: Pexels/Pixabay.

Administrators overseeing Glint emailed customers last night to confirm that cash deposits have all been reconciled and are accounted for, although withdrawals are still frozen.

“We are pleased to update that the Administrators have not identified any reason to believe there are any deficiencies or inaccuracies in the Customer Funds held,” Glint wrote in its email to customers.

Unfortunately Glint’s bank froze its safeguarded accounts on Friday as per its insolvency procedure, and the administrators have yet to secure its unlocking.

As for Glint’s gold supplies, the Administrators at FRP Advisory LLP have requested an independent statement from Glint’s Gold Liquidity provider and vault (Brinks) to confirm these match Glint’s records.

Gold trading is still currently frozen while this happens, but the Administrators say they are looking into a workaround “which will allow sales of gold held to recommence this week”.

Interestingly, the email lists the Administrators priorities going forward as to complete their review of the safeguarding arrangements of Glint, and then to “assist the directors in seeking investment to rescue the Companies on a solvent basis and exit Administration”.

If that is not possible, they say they will “achieve a transfer of the business and assets to another regulated entity.”

It’s unclear whether this would take the form of a sale of the business to clear its liabilities, including the loan to Brahma Finance Limited, or, as some company insiders have told AltFi they suspect, whether the business could eventually be handed over to Brahma.

Read more: Update 2: Glint freezes withdrawals as administrators confirm customer money is safe

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

Read more: Exclusive: Gold payment app Glint has fallen into administration months after raising £5m