City Credit Investment Bank Liquidation Linked to Alleged US$1.1 Billion Fraud
by Adam Fayed on
City Credit Investment Bank's liquidation involves an investigation into alleged fraud affecting an estimated 17,000 people with approximately US$1.1 billion in reported claims.
The figures have been reported in connection with the liquidator's efforts to obtain records from US banks for use in Malaysian proceedings.
They represent allegations and estimates associated with the investigation, not confirmed recoverable assets.
The Labuan investment bank has been subject to insolvency proceedings since 2023 and was formally ordered to be wound up in September 2024.
If you invested through City Credit Investment Bank and would like to hear my thoughts on the case or review your offshore investment arrangements, email hello@adamfayed.com or WhatsApp +44-7393-450-837.
What is happening in the City Credit Investment Bank liquidation?
City Credit Investment Bank's liquidator is investigating the institution's affairs and pursuing potential asset recoveries, while investors and creditors remain unable to redeem their funds.
According to a Labuan Financial Services Authority notice, Luke Anthony Furler was appointed interim liquidator on October 16, 2023, following a creditor's winding-up petition.
The liquidator confirms that the High Court of Sabah and Sarawak at the Federal Territory of Labuan subsequently ordered the company to be wound up on September 11, 2024, with Furler appointed liquidator.
The institution's client portal was deactivated around March 2023, leaving investors unable to access or view their accounts.
More recently, the liquidator has reportedly sought records from several US banks to assist proceedings in Malaysia.
According to OffshoreAlert's report on the US court application, liquidator Luke Furler sought records from several US banks for Malaysian proceedings involving an alleged global fraud in which an estimated 17,000 individuals were owed approximately US$1.1 billion.
However, the reported amounts should not be interpreted as established losses, verified creditor claims or money available for distribution.
Obtaining banking records could help the liquidator trace transactions, identify assets and investigate where investors' funds went. It does not mean that the disputed money has been located or recovered.
Can City Credit Investment Bank investors recover their money?
Investors may submit claims in the liquidation, but there is currently no assurance that they will recover their funds or receive payment within a particular period.
The liquidator said redemption requests are not being processed.
Instead, investors and creditors can obtain a Proof of Debt form through the website's claim submission facility.
Submitting a claim allows the liquidator to review the amount owed, but it does not automatically mean the claim will be accepted or paid.
The liquidator must establish which claims are valid, determine the company's available assets and pursue recoveries where possible.
Any distributions depend on the success of those efforts. The official website does not guarantee a repayment amount, payment date or that any recovery will ultimately be achieved.
This is especially important for investors who previously relied on balances displayed in the bank's online portal. A recorded account value is not necessarily the amount that will be admitted in liquidation or eventually repaid.
Affected investors should submit the required claim documentation, retain their account and transaction records, and monitor updates from the liquidator.
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