The Deposit Insurance Agency (DIA) has applied to the Arbitration Court of the Nizhny Novgorod Region to recover losses from individuals involved in the siphoning of assets from Bank Association.
According to the Russian publication Kommersant, those named include the Chief Executive Officer of Freedom Holding Corp, Timur Turlov. In 2022, due to sanctions risks, his company sold its Russian assets, and he renounced his Russian citizenship, moving to Kazakhstan.
"The grounds for the claims were the actions of the individuals involved in the case, aimed at siphoning assets from the bank. A criminal case has been opened regarding the theft of funds from the credit institution," the DIA emphasised.
It is reported that the Central Bank revoked the licence of the Nizhny Novgorod-based Bank Association back in July 2019, having discovered that the organisation's accounts with the foreign VTB Europe Bank were short by 3.8 billion roubles. It is noted that the sum is more than double the bank's own capital.
At the same time, the Arbitration Court declared Bank Association bankrupt. Subsequently, investigators opened a criminal case concerning the embezzlement of property.
For context, this is not the first time Timur Turlov has faced attacks on his company. Previously, he denied reports of an investigation launched in the USA targeting Freedom Holding Corp, describing the situation as an "information war".