NASSAU, BAHAMAS — ArawakX, the country’s first crowdfunding platform, says that it has every confidence in the country’s legal system and looks forward to having its day in court, this after Chief Justice Ian Winder ruled that there is more than sufficient evidence of the company’s insolvency to justify the appointment of a provisional liquidator.
“This is the initial phase of a comprehensive legal process. I have full faith in our legal system and eagerly await ArawakX’s substantive hearing in March,” said D’Arcy Rahming Sr, the company’s CEO, remarking on the recent legal developments.
Ian Winder, favoring the Securities Commission, recently ruled in favor of ousting ArawakX directors and management based on solvency deficiencies, alleged legal and regulatory breaches, including the “commingling” of client and company funds, and corporate governance shortcomings.
Winder found that ArawakX and its principals failed to provide substantial evidence countering the regulator’s claims of insolvency, as draft audited financial statements indicated negative equity of $2.3 million at the end of July 2022.
Yet to be determined is the provisional liquidator’s identity. ArawakX and its principals oppose the Securities Commission’s selection of James Gomez, the Ecovis Bahamas accountant and partner, citing potential conflicts of interest implied in previous legal filings.
The Securities Commission’s concerns arose on October 11, 2022, when James Campbell and investor and former president of Colina Insurance Company, along with Felix Stubbs, and Hillary Deveaux, former executive director of the Securities Commission, approached the commission as whistleblowers. They raised concerns about the company’s management, highlighting regulatory issues in its corporate structure related to directorship and share capital.
Rahming Sr has claimed that there is a conspiracy to take control of the platform and has called for an investigation into the Securities Commission’s actions.