Paul Marshall, hedge fund executive, unsuccessful in legal battle over silver recovered from shipwreck

In a legal battle that has captured international attention, hedge fund manager Sir Paul Marshall’s company, Argentum Exploration, has lost a fight with the South African government over $43 million worth of silver bars recovered from a World War II wreck in the Indian Ocean.

The dispute began when Argentum retrieved 2,364 silver bars from the wreck of the SS Tilawa in 2017, a ship sunk by a Japanese submarine en route to South Africa, resulting in the loss of 280 lives. The company initially claimed salvage rights over the treasure, valued at $43 million in 2020, but later conceded that South Africa owned the bars.

The UK’s Supreme Court ruled in favor of the South African government, stating that the country had sovereign immunity from Argentum’s claim. This decision overturned earlier rulings in the High Court and Court of Appeal, which had found that the silver was “in use” for commercial purposes, removing South Africa’s legal immunity.

Despite the legal setback, both parties have reached a settlement to resolve the matter. Marshall, who heads the hedge fund Marshall Wace and owns a stake in broadcaster GB News, controls Argentum Exploration. The company’s managing director, Ross Hyett, expressed satisfaction with the resolution, stating that the Supreme Court’s judgment clarified the law on sovereign immunity.

The case has drawn attention to the complexities of international salvage operations and legal disputes over valuable maritime artifacts. The settlement brings an end to a contentious chapter in the ongoing saga of the SS Tilawa wreck and the fate of its precious cargo.