The bank had argued it was "unconscionable" for her to believe the money was not stolen.
However, in the High Court at Auckland yesterday, the 41-year-old Bay of Plenty woman, who has name suppression, had the proceedings against her and companies she owned stopped after negotiating a settlement with the bank, the Dominion Post reported.
ASB lawyer Murray Tingey confirmed a deal had been reached but would not comment further. The sex worker's lawyer, David Jones, QC, also had nothing to say other than the matter had reached an end.
Versalko, 51, was sentenced in March to six years' jail after stealing $17.8m from 30 ASB Bank customers.
The Serious Fraud Office discovered Versalko, who worked for the bank between 1997 and 2009, spent $3.35m of his employer's money on two escorts.
Another prostitute whom Versalko paid just under $800,000 has not been pursued by the bank.
