Vesttoo Ltd. creditors are seeking to take control of the bankrupt Israeli startup’s court proceedings, arguing the company should liquidate following revelations that its former executives helped create fraudulent documents that supported transactions on its platform.
A committee of Vesttoo creditors said the company is “viewed as the Madoff of insurance” and that its remaining cash should be preserved so it can pursue potential litigation against former corporate insiders and other parties involved in the alleged fraud, according to a court filing Sunday.
