Bank of London Founder Faces High Court Battle with US Investor

Anthony Watson, founder of the Bank of London, is facing a High Court dispute with U.S. investment firm Forgelight over alleged unpaid debts. The case, which stems from statutory demands filed by the investor, underscores both the challenges faced by new entrants in the banking sector and the broader risks of fintech funding. For customers, investors, and regulators alike, the situation raises questions about governance, accountability, and long-term trust in emerging financial institutions.

Understanding the Dispute

At the heart of the case is a statutory demand — a formal notice that can precede bankruptcy proceedings if not resolved. Forgelight, based in Miami, claims Watson owes money, though the amount has not been disclosed. The firm was an early backer of the Bank of London, participating in its $90 million funding round in 2021 and another $40 million round in 2023.

Watson, who launched the bank in 2021, left abruptly in 2024 amid financial and regulatory pressures. He has filed an application to set aside the demand, represented by Janes Solicitors in London. Court filings also show that Bank of London removed Watson as a “person of significant control,” effectively severing ties with its founder.

A Troubled Fintech Journey

The Bank of London entered the market with ambitions to disrupt clearing and payments, but financial strains quickly followed. In 2023, the holding company reported losses of nearly £50 million, bringing total accumulated deficits since its launch close to £110 million. The bank also faced scrutiny from HM Revenue & Customs over an unpaid tax bill, though the matter was later withdrawn.

The turmoil extended to governance. High-profile figures such as Labour grandee Peter Mandelson and private equity executive Harvey Schwartz resigned from the board. Meanwhile, the Prudential Regulation Authority launched an investigation into “historical matters,” signaling ongoing regulatory attention.

Impact on Customers and Investors

For customers, these developments raise concerns about stability and trust in digital banking services. While the bank continues to operate, questions about leadership changes and mounting losses could undermine confidence in deposits, checking accounts, and digital banking products. For investors, the dispute highlights the risks of backing ambitious fintech projects, where rapid growth often comes at the cost of sustained profitability.

At the same time, the Bank of London has secured fresh funding — £57 million from Mangrove Capital, with an additional £25 million pledged — suggesting that investor appetite for long-term transformation remains. The bank’s new leadership insists on restructuring its operations, with the goal of strengthening lending, credit, and mortgage services while regaining regulatory trust.

Looking Ahead

The case between Watson and Forgelight adds another layer of uncertainty to the bank’s future. While the legal outcome remains pending, the episode highlights the importance of governance, transparency, and adequate capital management in the fintech sector.

For customers and investors alike, the lesson is clear: digital innovation in banking must be matched by sustainable financial practices. As interest rates, credit markets, and regulation continue to shape the sector, only institutions with strong foundations will thrive.

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