Singapore Fintech Firm Ordered to Pay Consultant Over Distressed Sale

A Singapore-based fintech firm has been ordered by the High Court to pay its former consultant US$803,663.83 in advisory fees after a dispute over the payment following a distressed sale of the company's cryptocurrency exchange to Temasek-backed Amber Group.

The court ruled that the fee was owed despite the original valuation being significantly lower than expected due to market conditions. The firm, Sparrow Tech, had initially hired the consultant, LinkChina Capital, to find a buyer or investor for its exchange at a 3% success fee of the 'enterprise value' of any deal.

The court determined that the enterprise value was to be calculated objectively from the financial terms of the share purchase agreement and the company's accounts. Using this method, the court arrived at an equity value of US$5.4 million, which led to a success fee of US$803,663.83.