March 3, 2021

Circular to Customers
Dear Sirs,
Subject: Torque Group Holdings Limited (In Provisional Liquidation), BVI Company Registration
Number: 2024611
Jason Kardachi and I were appointed Joint Provisional Liquidators (“Provisional Liquidators”) of Torque Group
Holdings Limited (“Torque” or “Company”) pursuant to an order of the Eastern Caribbean Supreme Court of theBritish Virgin Islands dated 2 March 2021 (“Order”). A copy of the Order will be provided once made available bythe BVI Court Registrar.
Upon the appointment of the Provisional Liquidators, the power of the directors of Torque have ceased and thedirectors no longer have any authority to deal with the assets of Torque. All dealings in Torque must now beauthorised by one of the Provisional Liquidators or their authorised representatives.
Among other things, the responsibilities of the Provisional Liquidators include identifying, taking control of andrealising the assets of Torque and carrying out such investigations as the Provisional Liquidators consider
appropriate.
The Provisional Liquidators immediate next steps will focus on:•identifying and verifying customer claims;•investigating transactions of concern; and•communications.

BORRELLI WALSH (BVI) LIMITED
3rd Floor, Commerce House
P.O. Box 3339
Road Town, Tortola VG1110
British Virgin Islands

www.borrelliwalsh.com

Identifying and verifying customer claims
Torque has over 14,000 estimated customers spanning more than 120 countries. The Provisional Liquidators
process to properly identify customers and verify the value of their claims will be a complex and time-consuming
process.
The Provisional Liquidators are considering cost effective methods to undertake this process and will revert withan update as soon as possible.
Investigating transactions of concern
As many Torque customers are aware, various transactions of concern were recently identified involving a former
management representative who: (1) undertook unauthorised leveraged cryptocurrency trades resulting insubstantial losses to the Company; and (2) may have misappropriated certain cryptocurrency assets.
The Provisional Liquidators will investigate the circumstances of these transactions of concern and seek torecover/seize misappropriated assets and minimise losses to the Company’s creditors. This will involve expert
forensic accounting and technology services.
Whilst these investigations will be pursued as a priority, the Provisional Liquidators expect this process will taketime given:•the complexity involved in tracing movement of cryptocurrency assets;•extensive scale of customers and information that needs to be obtained, reviewed, and analysed; and•what appears to be at this early stage relatively weak corporate governance, controls and documentation.

All Torque customer accounts to remain frozen
Unfortunately, all Torque user accounts will remain frozen for the foreseeable future.
The Provisional Liquidators are not legally capable of repaying any Torque customers until they have properly
verified all 14,000 customer claims and completed at least their preliminary investigations into the transactions ofconcern. Given the number of customers and the complexity of Torque’s business, these processes will bechallenging and likely take (at least) several months.
The Provisional Liquidators aim to provide an estimated timeline for securing/realising Torque’s cryptocurrency
assets and verifying creditor claims in coming weeks.
Communications Protocol
The Provisional liquidators will endeavour to update Torque customers as regularly as possible. However, given
there are approximately 14,000 customers, responding to all customer queries individually is not feasible oreconomical. It is important the Provisional Liquidators focus the Company’s limited cash resources on investigating
and recovering assets to maximise the returns available to customers.
The Provisional Liquidators’ current intention is to issue regular updates (“Creditor Circulars”) to all customers byemail and deal with other queries raised as appropriate. The Creditor Circulars will also be uploaded to Borrelli2

Walsh’s website (https://www.borrelliwalsh.com/creditors/). In the event that any meaningful progress is otherwise
made, the Provisional Liquidators will issue further ad hoc updates as and when appropriate.
The Provisional Liquidators’ answers to individual creditor queries will be consolidated and issued to all potential
creditors by Creditor Circular as and when appropriate.
For any urgent customer, creditor and media enquiries, please contact the Provisional Liquidators at:
torque@borrelliwalsh.com.

Sincerely,

Philip Smith
Joint Provisional Liquidator
Torque Group Holdings Limited(In Provisional Liquidation)3