The Stockholm-based company, which accepts UK lenders onto its platform, appointed a new management team in September which carried out an internal investigation in relation to the activities undertaken by the former management.
Although the investigation is ongoing, it has already pointed out several breaches of internal or external regulation and indicated a “serious misconduct” within the company.
So far it has found that the company used lenders’ capital in violation of their instructions, or, without their permission – practices that it said were probably in place since the TrustBuddy platform began operations.
Simon Nathanson, Chairman of the Board of TrustBuddy AB, said: “We are, of course, very disappointed in the situation that has arisen.
“With the new management team in place, TrustBuddy had both the platform and the capacity to create a company built for growth and industry leadership.
“In light of the recent events, we now have to redirect our focus to find a solution that is in the best interest for all stakeholders.”
TrustBuddy has reported the violations to Nasdaq OMX and the Swedish Financial Services Authority which demanded that the platform’s operation be suspended with immediate effect.
All members of the previous management team who are still employed by the firm have been suspended while additional investigations take place.
TrustBuddy started accepting lenders onto its platforms from the UK, the US, Germany and the Netherlands in September 2013.
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