Citing ongoing litigation with VictoriaBank, the Zeek Receivership has announced an interim partial distribution.

With the Receivership winding up after the VictoriaBank litigation concludes, the original plan was to hold out until a final distribution could be made.

The VictoriaBank litigation continues to drag on however, prompting the Receivership to apply for permission to distribute $28 million on February 5th.

The court approved distribution on February 10th, meaning Zeek Rewards victims with valid claims will soon be receiving an interim payment.

At this stage it’s unclear when the VictoriaBank litigation will resolve. VictoriaBank is desperately trying to retain ownership of $13.1 million in stolen investor funds.

Last we checked in the Receivership had filed an appeal against a decision that went in VictoriaBank’s favor.

Stated the Receiver in a February 11th announcement;

After considering the potential for continued and protracted litigation with Victoriabank of Moldova, which is now on appeal for the second time, I did not find it reasonable to wait to make another distribution until the litigation ends, which may potentially be a year or more.

The Zeek Receivership’s dispute with VictoriaBank dates back to 2016.

 

Update 28th March 2020 – The Receiver has provided an update regarding the interim distribution:

The Receiver Team has been working diligently to execute this distribution, which requires significant work by multiple vendors and extensive correspondence with the bank.

I have received many inquiries from claimants regarding the timing of this distribution. While I cannot provide a specific date by which we will begin making the payments, I hope that we will be able to begin sending the checks in the next thirty days.

Note that this isn’t a definitive timeline.