• Approximately USD330,000 in tax payments were misappropriated by a Fincaraiz employee
• An additional USD100,000 in fraudulent corporate credit card expenses were identified
• The company is taking steps to address the issues, including appointing forensic accountants and legal counsel

Frontier Digital Ventures Ltd (ASX: FDV) has provided an update on its investigation into the apparent misappropriation of funds relating to its Colombian business, Fincaraiz. The company became aware on the weekend of 16-17 August 2025 that payments totalling approximately USD330,000, which were supposed to have been made to the Colombian taxation authority over the period from 15 January 2025 to 14 August 2025, had not been made and had instead been transferred out of Fincaraiz accounts without the company's approval. As a result, certain of Fincaraiz's Colombian bank accounts were frozen by the Colombian taxation authority in August. In addition to the apparent misappropriation of the tax payment, the company has identified approximately USD100,000 of allegedly fraudulent corporate credit card expenses that were incurred by a small number of Fincaraiz employees across 2023, 2024 and 2025. The company has immediately begun an investigation into the matter, including putting a small number of Fincaraiz employees under investigation and on compulsory paid leave. The company is also establishing alternative operating systems and funding arrangements to ensure business continuity, and is in the process of appointing a forensic accountant and legal counsel to conduct a review and seek to recover the funds. The total quantum of apparently misappropriated funds identified to date is approximately USD430,000, plus interest on the overdue payments to the Colombian tax authority. The company will provide further updates on any material developments in this matter.