AI Litigation Concerns Fuel Demand for Offshore Asset Protection - Southpac Group

Southpac Group reports 290% client growth as rising AI dispute exposure prompts US founders and business owners to reassess asset protection.

SAN FRANCISCO, CA, UNITED STATES, July 28, 2026 /EINPresswire.com/ -- The number of US technology entrepreneurs moving wealth into Cook Islands and Nevis asset protection structures is growing as artificial intelligence, cybersecurity and data privacy drive litigation that places founders' personal wealth at increasing risk, according to data analysis by financial services firm Southpac Group.
New US research shows more than half (56%) of senior in-house legal counsel surveyed across the technology, healthcare, financial institutions and energy sectors reported increased exposure to cybersecurity and data privacy disputes. In comparison, 46% reported increased exposure to AI-related disputes. Data breaches were identified as the most likely trigger for future litigation.
Southpac Group, a specialist offshore trustee and international asset protection services firm managing around US$4 billion in assets, says new client numbers rose more than 290 percent between 2022 and 2025, with the United States now accounting for around 85 percent of its client base.
Matthew Smith, a lawyer and director of business development at Southpac Group, says many tech founders are creating significant personal wealth through business growth, investment rounds and company sales, making long-term asset protection an increasingly important consideration.
"Most clients are professionals or company owners looking to protect assets they have spent decades building," Smith says.
"Technology entrepreneurs can create substantial personal wealth very quickly through rapid business growth, investment or a company sale. As that wealth grows, so does the importance of thinking about long-term asset protection, succession planning and managing legal risk."
Smith says offshore asset protection structures are far more common in the United States than in countries with less aggressive civil litigation systems and are typically established as part of a broader wealth preservation and risk management strategy.
"The key point is that asset protection planning needs to happen before there is a dispute," Smith says.
"Once litigation is underway, it is usually too late to establish these structures effectively or appropriately."
Southpac CEO Mike Arand says the firm was the first licensed trustee company in the Cook Islands and has established more than 4,000 trusts over the past 40 years.
He says clients typically hold between US$2 million and US$10 million in assets and come from 51 countries, with the United States remaining by far the firm's largest market.
The Cook Islands became internationally known for asset protection trusts after introducing specialised legislation in the late 1980s designed to protect assets from future creditor claims, provided structures are established before legal action begins.
Arand says Southpac also uses Nevis, a Caribbean jurisdiction known for protective company legislation, as part of some client structures.
"Many clients combine a Cook Islands trust with a Nevis company, creating two layers of protection across separate jurisdictions," he says.
"That combination is one of the reasons Cook Islands and Nevis structures are widely discussed in the US asset protection market."
Offshore trusts have long attracted controversy, but Arand says Southpac operates a comprehensive due diligence programme before taking on clients, including client verification, background checks, sanctions screening, politically exposed person checks and ongoing monitoring.
"Prospective clients can be declined outright where there are concerns around sanctions exposure, criminal activity, tax transparency or existing legal claims," Arand says.
The Cook Islands was rated compliant or largely compliant across 38 of 40 recommendations set by the Financial Action Task Force in its latest international review.
The firm is now expanding its network of attorneys, wealth advisers and professional referrers across North America, including meetings with specialist asset protection lawyers in California, Florida and Canada.
"There are thousands of lawyers across the US advising on domestic asset protection, but many still do not fully understand offshore structures," Smith says.
"That represents a significant growth opportunity for us."
Southpac currently administers trusts established by clients from 51 countries and employs teams across New Zealand, the Cook Islands, Nevis and the Philippines.
Arand says demand is expected to continue growing as more technology entrepreneurs, business owners and professionals look beyond domestic planning tools and seek sophisticated cross-border wealth protection structures.
"For many clients, this is not about secrecy or tax avoidance," Arand says.
"It is about preserving family wealth in a legal environment where one major dispute can put decades of work at risk."

Mark Devlin
Impact PR
+64 21 509 060
email us here
Visit us on social media:
LinkedIn

SOUTHPAC GROUP | Becoming a Client | Perspectives

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.