The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

DELTEC Bank & Trust last night confirmed it has moved “to realign its workforce” via a right-sizing which is said to have resulted in around 11 staff being terminated last week.

The Lyford Cay-based institution, responding to Tribune Business inquiries, said it is concentrating on

becoming “an agile, future-focused international bank” with well-placed sources suggesting the lay-offs were linked to the need to reduce its workforce in the aftermath of its Ansbacher (Bahamas) purchase.

“In the ordinary course of business, the bank has made a decision to realign its workforce. This strategic realignment is focused on consolidating the gains from its recent acquisition,” Deltec said in a statement.

“Despite recent headlines and stories, the Deltec team grew the capabilities needed to accommodate a diverse portfolio for further profitability and sustainability and, in this strategic realignment, will reiterate its positioning, which expands well beyond servicing the digital assets sector.”

Tribune Business contacts, speaking on condition of anonymity, said Deltec Bank & Trust is also reducing its exposure to digital assets and the volatility associated with the industry. “There was a downsizing on Thursday or Friday last week. I think they let about 11 people go,” one said.

“It was in line with the aftermath of the Ansbacher acquisition. They did a lot of investment in technology and kept people on longer than they needed to. After the acquisition they are kind of right-sizing. I don’t know why they took that long.”

Deltec, in its statement, added: “The bank is deeply grateful for the dedication and hard work of the team

members that are impacted by this, and to support affected colleagues has provided comprehensive severance packages, personalised career transition services, and job placement assistance in collaboration with the Ministry of Labour.

“Deltec Bank remains dedicated to its mission of providing exceptional bank- ing services worldwide, is excited about the future and confident in its strategic direction, supported by a talented team of over 100 people, cutting-edge technology and the trust of clients and stakeholders.”

However, several sources said Deltec is also undertaking “a shift in their business model” to reduce its digital assets exposure as a percentage of its overall business. “I don’t think they’ll be leaving that sector totally,” one said. “It’s just reducing the exposure, the amount of money and adjusting their appetite.

“They’re going to be selective in the type of client they take on, and are going to be going back to their core business. A part of that is focusing on corporate business but not digital assets. I think you can understand why. That sector is more risky than typical sectors. I think it’s going to be quite a significant reduction in their overall exposure to the sector.”

Deltec and its chairman, Jean Chalopin, have become embroiled in class action lawsuits launched by aggrieved FTX investors in the wake of the crypto exchange’s high-profile November 2022 collapse. Their pursuit has been given fresh ammunition from the production of 7,000 pages of Telegram messages - many featuring the Bahamian bank’s executives - by Sam Bankman-Fried’s former girlfriend.

Deltec and Mr Chalopin last month reaffirmed their stance that the latest allegations represent more “meritless claims” that will be “vigorously defended”, while suggesting that Caroline Ellison and other former cronies of the FTX founder are motivated by their desire to settle the same class action lawsuit’s claims against them.

“We are aware of the amended complaint filed by plaintiffs’ lawyers in the FTX matter. The new complaint does not cure the defects of the prior complaints and Deltec will continue to vigorously defend against these meritless claims, which do not belong in a US court,” they asserted in a written response to Tribune Busi- ness inquiries.

“The new allegations rely heavily on unsubstantiated statements by individuals who we understand are settling their lawsuits with plaintiffs in exchange for providing the information. Like the rest of the world, Deltec Bank and Jean Chalopin had no knowledge of FTX’s misconduct until it was made public.”

Deltec, in legal filings in the south Florida court, said it had less than 150 full-time staff and net profits of under $15m for 2023.