NASSAU, THE BAHAMAS - John S. Bain, a Bahamian Chartered Accountant, forensic accountant and insolvency practitioner, has been appointed by the Supreme Court of The Bahamas as one of three Joint Provisional Liquidators of FAEX Fund Ltd., a Bahamas-incorporated and licensed SMART Fund, in proceedings connected with the liquidation of Brazil's Banco Master.

The Supreme Court made the appointment on August 6, 2026, naming Bain alongside Kevin Hellard of Grant Thornton UK and John Skelton of Grant Thornton BVI. The appointment remains in place pending determination of Banco Master's winding-up petition or further order of the Court.

FAEX was incorporated in The Bahamas on February 20, 2017. Court filings by Banco Master's Brazilian liquidator allege that FAEX formed part of a complex cross-border structure through which several billion US dollars of assets or value belonging to Banco Master were wrongfully diverted, held or concealed. Those allegations are part of ongoing proceedings and have not been finally determined by the Court.

In an affidavit filed in support of the winding-up proceedings, Eduardo Felix Bianchini, Banco Master's Brazilian liquidator, states that losses suffered by Banco Master appear to be on an unprecedented scale. The affidavit says the alleged fraud may be comparable in scale to, and the losses potentially exceed, some of the largest financial frauds in modern history, including the Bernard Madoff and FTX cases.

The affidavit further alleges that funds were misappropriated from Banco Master and routed through FAEX and related entities. It states that FAEX had no employees, conducted no identifiable legitimate trading activity, and had no independent source of revenue or capital capable of explaining the scale of value associated with the structure.

FAEX Fund Ltd. - Press Release (continued)

The Central Bank of Brazil placed Banco Master into extrajudicial liquidation on November 18, 2025. The Brazilian regulator cited a severe liquidity crisis, significant deterioration in the bank's financial condition, and serious violations of financial-system regulations. EFB Regimes Especiais de Empresas Ltda. was appointed as liquidator.

As Joint Provisional Liquidators, Bain, Hellard and Skelton have been tasked with preserving and protecting FAEX's assets and records, including assets held directly or indirectly through the wider FAEX structure, while the winding-up petition is before the Supreme Court.

The matter has a direct Bahamian dimension. FAEX is a Bahamas company and licensed SMART Fund, and the proceedings involve cross-border work relating to asset preservation, records and potential recoveries in The Bahamas, Brazil and other jurisdictions.

The substantive winding-up petition is scheduled to be heard before Chief Justice Sir Ian Winder on Thursday, October 8, 2026 at 10:00 a.m. at the Supreme Court in Nassau. The hearing date remains subject to any further direction of the Court.

Bain is Managing Partner of Grant Thornton Bahamas and a Chartered Accountant. He is a Fellow of the Association of Chartered Certified Accountants (ACCA), the Bahamas Institute of Chartered Accountants and an INSOL Fellow. His professional practice includes forensic accounting, insolvency and restructuring, financial investigations, litigation support and court-appointed assignments.

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Note to editors: FAEX Fund Ltd. is the subject of proceedings in the Supreme Court of The Bahamas, Commercial Division, Cause No. 2026/COM/com/00029. References to alleged fraud, diversion of assets or other misconduct in this release are drawn from affidavits and court filings in ongoing proceedings and should not be treated as final findings against any person or entity unless and until determined by a competent court.

Media inquiries: John S. Bain | john@jsb.solutions