Uncovering Backroom Missteps During Migom's Downfall

<p>Despite being the subject of multiple news
stories throughout August and September, there has been little insight into the
decline of Migom Bank.</p><p>The neobank once hailed as a rising star out of
Dominica now finds itself under the industry's watchful eye. Its journey from a
hopeful endeavor to a notorious figure has been <a href="https://www.digitaljournal.com/business/migom-banks-transformation-navigating-the-highs-and-lows/article">marked by
hasty acquisitions</a> and a stunning inability to
connect with its investors, clients, and users. This turbulent transformation
took place in the aftermath of a service shutdown in early 2023, and the bank's
struggle to <a href="https://www.usatoday.com/story/special/contributor-content/2023/08/11/migom-banks-challenging-journey/70574460007/">mend its
correspondent network</a>, secure fresh capital, and appease
inquisitive clients remains ongoing.</p><p>Recent developments, spearheaded by independent
investigators with private backing, have unveiled fresh insights into Migom's
internal decision-making. Unfortunately, for those holding out hope for a
miraculous turnaround, this newfound information only highlights a pattern of
ineptitude, recklessness, and a brazen attitude toward high-stakes investments.</p><p>A Meeting with New Investors</p><p>We have learned that recently a private
investigator was engaged by a group of individuals related to the bank and its
holding company to glean information about the real causes of the problems
likely concealed by the management. Among other things a number of bank's
employees in Europe and the USA were interviewed confidentially. Based on the
records of text messages and the photographic evidence of legal documents
provided by them, it appears that a backroom deal went wrong.</p><p>During the later days of the bank’s success,
Migom’s executive staff were allegedly approached by controversial
British-Brazilian investor Carlos Daniel Filho De Magalhaes, who they would
later learn had ties to several African and Russian oligarchs. At the time,
such interest intrigued the bank’s upper management to the point that they were
willing to have personal meetings with him. One such meeting evolved into a
proposed meet-and-greet with several Brazilian and American crypto players, of
whom one in particular stands out: Alex Gomes Cordeiro. </p><p>Wild Claims Draw Moths to the Flame</p><p>Cordeiro led a group
of self-proclaimed crypto and investment masters, including Dalila
Costa-Leroy, who claimed she had a decades-long career on Wall Street and
with European banks. While Costa-Leroy flaunted
her business acumen and presented herself as a member of the global banking
inner circle, Cordeiro positioned himself as a self-made
billionaire with several university degrees, and both the world’s biggest
Bitcoin whale and miner. He made several other improbable claims during the
meeting with Migom, including asserting
himself as a founder of the well-known Shiba Inu (SHIB) cryptocurrency.</p><p>As Cordeiro claimed to hold Migom Bank in high
regard, he was offering to associate with them as a client and investor. As a
part of the preparation for this collaboration, he requested full access to
Migom's systems, servers, and wallets to audit their security and safety in
preparation for the deposits of his huge wealth. He also requested perks in the
form of an apartment and expensive tech as he wanted to manage his proclaimed
global financial empire unimpeded while working on all the new projects with
Migom Bank. Cordeiro and his associates completely hypnotized Migom's
management, and despite objections from the Migom's advisors, access was
granted in early April of 2023.</p><p>Hook, Line, and Stinker</p><p>Migom bit, signed documentation verifying the
deposit of the SHIB, and began to provide Cordeiro with
his requested perks. It was not long before the investors’ promises began to
fall through. Cordeiro started to complain about legal
issues in Brazil that were preventing him from following through on his
obligations. He eventually disappeared, along with the Migom logs he had
accessed and Migom’s stored cryptocurrency.</p><p>Migom was allegedly holding nearly 20 million
stablecoins, almost 100 BTC, and over 65 ETH in their cold wallets, the safety
and redundancy of which Cordeiro was allowed
to inspect. Around the time of his departure, these funds allegedly went
missing, while frequent emails from Migom President Thomas Schaetti to bank
clients promising that operations would be up and running in a matter of weeks,
suddenly ceased. Migom later mentioned that they had <a href="https://marketbusinessnews.com/migom-banks-moment-of-truth/344220/">experienced
a significant crypto loss,</a> followed by seemingly
baseless claims about embezzlement from former investors and Russian
associates.</p><p>To complicate matters further, investigations
into the other investors revealed that Cordeiro’s
number 2, Costa-Leroy,
had worked for 11 different brokerage companies, from one of which she
allegedly stole $570,000. As a result, <a href="https://www.kurtalawfirm.com/blog/dalila-costa-leroy/">her
license had also been suspended</a> by the
US-based capital market company FINRA. </p><p>Beware the Wolf in Investor’s Clothing</p><p>Speculation runs wild amidst Migom's
conspicuous lack of transparency concerning their internal operations during
this crisis. If the alleged collaboration holds any water, it raises alarming
questions about potential incompetence that could have allowed the pilfering of
client funds and cryptocurrencies right under Migom's nose. These
investigations, though shrouded in uncertainty, have yielded photographic
evidence that lends credence to at least some of these claims.</p><p>In the grand scheme, this is just another log
on the funeral pyre that Migom seems to be stoking for themselves. The truth of
these events will eventually surface, and the longer the beleaguered bank
maintains its silence, the more its reputation will deteriorate. For now, one
can only hope that this fresh information provides Migom's clients with a
glimpse into the behind-the-scenes happenings and serves as a cautionary tale
for both investors and banking institutions alike.</p>

This article was written by FM Contributors at www.financemagnates.com.