Relm Insurance, a subsidiary of the Deltec International Group, the parent company of Deltec Bank & Trust, has issued a statement attempting to distance itself from the fallout from FTX and Alameda – companies it was, at least partially, insuring.
In a statement from CEO, Joseph Ziolkowski, Relm admits to insuring West Realm Shires (aka FTX US), FTX Australia Pty. Ltd., and “companies that have been compromised due to their relationship with FTX and Alameda.”
“Following a detailed review of our entire portfolio, we remain confident that we will continue to be well-capitalized to serve the needs of the industry as the fallout from this event evolves,” wrote Ziolkowski.
It was reported in trade publication The Insurer that the known insurance policies provided by Relm for FTX and Alameda-related companies alone totaled north of $15 million, meaning the myriad insurance policies in place for “companies… compromised due to their relationship with FTX and Alameda” could run far higher.
Relm also reassured its policyholders that “95% of… assets [are] in cash or US Treasury bills.”
Offshore captive insurance
In a post-COVID19 outbreak blog post, Relm spoke of utilizing captive insurance — an alternative to self-insurance where a parent group creates a licensed insurance company to provide insurance for itself — to innovate in “high-growth industries — such as digital assets or legal cannabis farms.” This is an eerily similar business plan to that of the embattled Moonstone Bank.
The blog post refers specifically to “Not Realm Insurance,” which it states “creates bespoke insurance solutions for” both the cannabis and digital asset industries, and calls it a “trustworthy partner in the search for affordable protection.”
Read more: Exclusive: Moonstone Bank further explains Gemini and Revolut ties
Continuing connections to Chalopin
The exposure of yet another Deltec-related entity to the fallout from FTX means all eyes are on Jean Chalopin, who is chairman of Deltec Bank & Trust, chairperson and shareholder for Moonstone, and, according to Chalopin himself, is partially responsible for the creation of Relm Insurance. Indeed, Relm is listed on an archived version of the Deltec website.
“I would argue the vast majority of the crypto industry now is insured via Relm,” said podcast host Henri Arslanian in June of 2022. “Obviously, Relm is a part of the Deltec group of families.”
“People could not get insurance,” said Chalopin. “For a year we were only authorized to insure Deltec Group companies… Risk in insurance you cannot go blindly, in banking you can, but insurance you can’t.”
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Source: https://protos.com/bermuda-based-insurer-relm-distances-itself-from-ftx-fallout/