Scrutiny Mounts Over Bank of Asia Liquidation
The court-supervised liquidation of Bank of Asia (BVI) Limited is facing growing scrutiny over delays, mounting costs, and the handling of competing bids. Liquidators agreed to sell the institution's licence and assets to an entity linked to NYSE-listed Soulpower Acquisition Corporation, but key regulatory approvals remain pending 17 months after insolvency proceedings began.
The ongoing court-supervised liquidation of Bank of Asia (BVI) Limited has come under heightened scrutiny as questions mount over the proposed sale of its banking licence, the handling of competing offers, and the overall management of the estate. Overseen by joint liquidator Russell Crumpler, the proceedings remain incomplete roughly 17 months after provisional liquidators were first appointed in May 2025.
Bank of Asia was incorporated in the British Virgin Islands in August 2015, received a restricted banking licence in 2017, and launched operations in 2018 as a digital banking institution targeting Asian markets. In March 2021, it secured a general banking licence, marking a notable milestone as the first new banking entrant in the Territory in nearly two decades.
However, the BVI Financial Services Commission raised formal concerns in mid-2024, issuing directives to address capital deficiencies. An independent review by Deloitte in February 2025 concluded the bank was insolvent or at immediate risk of insolvency, citing significant related-party exposures that represented at least half of the institution's assets.
The Eastern Caribbean Supreme Court placed the bank into provisional liquidation on May 28, 2025, initiating a wind-down supervised alongside the Virgin Islands Deposit Insurance Corporation. Public concern deepened following revelations that the Government of the Virgin Islands had deposited approximately US$5 million with the bank in 2025, after regulatory warnings were already underway.
In November 2025, the liquidators signed an agreement to sell the banking licence and certain assets to SWB LLC, an entity tied to Soulpower Acquisition Corporation, a Cayman Islands special purpose acquisition company listed on the New York Stock Exchange. The deal involves both cash and equity considerations linked to a proposed business combination to form Soul World Bank.
Although the BVI High Court granted permission for the asset disposal in July 2026, the sale cannot close without full regulatory approval from the Financial Services Commission and deposit-protection clearance from the deposit insurance authority. The equity component of the deal has raised substantial concerns.
Soulpower shares have featured in US investor disputes connected to a January 2025 civil enforcement action by the Securities and Exchange Commission against Broad Street Global Management over an alleged US$1 billion fraud. Although Soulpower is not named as a defendant in that fraud case, stakeholders have raised questions regarding the liquidity and true valuation of accepting SPAC equity on behalf of the liquidation estate.
Further scrutiny has centred on the sale process itself. Reports indicate that other reputable offers for the bank's assets were submitted but allegedly received no acknowledgment, raising questions over whether the market was sufficiently tested. With the sale still unfinalised as of late 2026, attention is also turning to accumulated professional fees and whether creditors or statutory bodies might explore provisions under Section 187 of the BVI Insolvency Act regarding liquidator oversight.
Liquidators, regulatory bodies, and prospective buyers have been asked to address the pending status of approvals, the timeline for completion, and safeguards surrounding public funds as the Territory seeks to protect its international financial reputation.
Primary source: Guavaberry