The company enabled customers to book international holiday packages which included a portion of time spent volunteering in local communities, as a way for travellers to give back to the places they visited.
Earlier this year, BDO NZ liquidators revealed in a report that the company’s closure occurred after Salisbury put more than US$2 million ($3.24m) of customer funds into multiple cryptocurrency platforms from October 2020 until mid-2022.
While most of the money was lost due to poor trading decisions, about US$800,000 was lost because Salisbury put it into fraudulent platforms which simply “ceased to exist”.
It was previously reported that all the money was lost, but in the latest report BDO revealed two “undisclosed” crypto platforms had been discovered during their investigation, containing $11,143 worth of cryptocurrencies.
“When queried with the director, it appears these platforms had been overlooked in our previous correspondence and the director subsequently transferred the balance to the Liquidators’ trust account as requested,” the report said.
BDO has received 1193 claims against the company, totalling more than $4.2m. The average claim is for $3557.
The report said the investigation had been “difficult and time intensive”, partly due to Salisbury’s use of crypto withdrawal platforms which were “unsophisticated” and did not provide a reliable, traceable transaction history.
“The primary objective of these investigations has been to determine whether there are any recoverable assets that remain as a result of the cryptocurrency purchases and trading that have either gone undisclosed or overlooked. It is our opinion that this remains inconclusive, although this investigation is still ongoing.”
As well as possible asset recovery, BDO is looking at two methods of retrieving some of the money. This includes a possible “claw back” of payments made to Salisbury, which could be possible under the Companies Act 1993. BDO is also looking into whether Salisbury breached his director’s duties under the Act.
“Absent any significant new information, a resolution through one or both of these causes of action will be the only avenue for a meaningful distribution to creditors.”
BDO formally wrote to Salisbury, demanding $781,187.
“The director, via their solicitor, rejected the assertions from the liquidators, including the suggestion that the director has breached their duties for the investment strategy in cryptocurrency that ultimately cost the company over $3m.
“The liquidators met with their solicitors to consider the points raised and intend to respond once further investigations have taken place.”
Jacqueline Wood said the “ultimate insult” was that Bamboo tried to partly blame its customers for the closure.
The Herald has attempted to contact Salisbury through various emails, phone numbers, social media and visits to his home, but he has not responded to requests for comment.
Melissa Nightingale is a Wellington-based reporter who covers crime, justice and news in the capital. She joined the Herald in 2016 and has worked as a journalist for 10 years.