Well-known crypto bull and co-founder of Tether Brock Pierce is currently locked in multiple legal disputes due to the failure of some of his business ventures in Puerto Rico. According to a report from the New York Times, the foremost crypto leader relocated to Puerto Rico to start up crypto-oriented businesses due to the island’s Act which allows 60 tax break.
The Act came up as one of the measures put in place to attract the “creme de la creme” in the crypto world seeking places with favorable tax conditions to set up their ventures. The Tether co-founder found the provision of this Act as an opportunity and headed to the region to acquire numerous startups. In an attempt to transform Puerto into a global hub, Pierce bought W Hotel which is located on the eastern coast of the region. The hotel was part of the properties affected by Hurricane Maria, a Category 5 storm that stormed the Caribbean in 2017.
However, Pierce’s intention to restore the glory of the hotel has now started hitting the roadblock. According to court records obtained by the New York Times, the entrepreneur’s efforts have suffered a setback due to legal disputes with business partners and unpaid bills.
Genesis of the lawsuits facing the Tether Co-founder
Meanwhile, Pierce’s embattlement started after logistics magnate Mr. Lipsey seized control of the hotel. As per report, Mr. Lipsey had initially loaned Pierce $4 million for the acquisition project. However, the logistics magnate claims the Tether co-founder violated the terms of the agreement between them by misappropriating the funds intended for the acquisition. Rather than using the funds for its sole purpose, Lipsey said Pierce used it to organize a lavish party.
The crisis between the duo gained more ground after Lipsey accused the Tether co-founder of attempting to kidnap him. According to Lipsey, Pierce made an attempt to abduct him during a quarrel at another hotel. This development has sparked numerous controversies and lawsuits against Pierce. However, according to reports, both parties might reach a settlement soon.
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