Thousands of investors are facing losses of close to half the £152m they put into a failed peer-to-peer lender that is being investigated for moving property to related parties before its collapse.
Administrators of Lendy, which collapsed in May, have warned investors that they should expect to lose a significant proportion of the capital they put into the platform because of the dire state of its loan book.
Lendy began crowdsourcing money from retail investors to lend to property developers in 2014. It suffered a sharp rise in defaults leading up to its failure, at which point about £152 million was outstanding.
