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Xinja returns all customer deposits as it finalises exit from banking scene
Xinja founder and chief Eric Wilson. Source: supplied.
Neobank Xinja has become the first authorised deposit-taking institution (ADI) in Australia to return its deposits to customers, after finalising its exit from the local banking scene.
Xinja began returning millions of dollars in deposits to customers in December, following its shock announcement it intended to cease operating as a bank and return its ADI license to the Australian Prudential Regulation Authority (APRA).
This return of deposits process was finalised on Tuesday, said APRA, with Xinja transferring its remaining customer accounts to NAB.
Fallen neobank Xinja probed by secret US website offering $1m rewards
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Fallen neobank Xinja is being probed by an anonymous US-based website offering cash rewards of up to $1 million for information about the Middle Eastern capital injection that never came through.
A website called Xinja tips that is registered to a New York City address is calling for information about the $433 million deal brokered by First Penny Investments chief executive Michael Gale. We are investigating the Xinja deal on behalf of an international client with the focus on Mr Michael Gale, First Penny Investments as well as a Chinese company, the website says.
Xinja exits the neobank scene: What happened, and what does it mean for the competition?
Xinja founder and chief Eric Wilson. Source: supplied.
Xinja has made a shock exit from the Australian neobank scene, handing back its Authorised Deposit-taking Institution (ADI) licence and closing customer accounts, while naming COVID-19 as a major factor.
Following what it called “a review of the market”, Xinja announced it will withdraw its bank account and Stash savings account, and stop operating as a bank.
Instead, it will “refocus the business”, in other areas, including its US share trading product Dabble.
Xinja largely blames the failure on the COVID-19 pandemic, and the challenge of raising funds for a particularly capital-intensive business in this environment.