Is Brock Broke? Tether Founder in Legal Battle Over Property in Puerto Rico
Brock Pierce, co-founder of the controversial ‘stablecoin’ Tether, is suing his former business partner Joseph Lipsey III over control of the W resort in Puerto Rico. Pierce initially acquired a majority stake in the hotel in 2021 and secured a line of credit from Lipsey III, a prominent figure in the trucking industry, to buy out other owners.
The lawsuit alleges that Lipsey III seized the hotel after Pierce missed a transaction completion deadline, a claim vehemently denied by Pierce. The New York Post provides details on the complaint, suggesting that the default was manufactured to “outright steal” the property.
The Lipsey family has faced legal troubles in the past, including allegations of hosting parties involving cocaine distribution to minors. While the cocaine-related charges were dropped, they pleaded guilty to lesser charges.
Following these incidents, the Lipseys relocated to Puerto Rico, where they reportedly became close to Pierce. This connection is under scrutiny as Pierce faces legal battles over the W resort.
Pierce, who once claimed to be a billionaire, had promised to give away $1 billion using a decentralized autonomous organization (DAO). However, as of now, there is no indication that he has followed through on this plan, raising questions about the existence of the funds in the first place.
In a 2017 interview, Pierce expressed his unconventional views on wealth, stating, “I don’t care about money, if I need money, I just make a token.” This perspective adds complexity to the ongoing legal dispute.
Notably, Pierce has faced allegations of sexual abuse in a since-dropped lawsuit and has been associated with individuals involved in inappropriate behavior around minors. He spoke at a conference organized by Jeffrey Epstein and reportedly discussed cryptocurrency with Epstein multiple times. Pierce’s representative, however, claimed to The Hollywood Reporter that he was unaware of Epstein’s identity.
Additionally, Pierce has collaborated with Steve Bannon, a Trump strategist linked to Epstein’s coaching. Their association began at Digital Entertainment Network and continued during Pierce’s unsuccessful Senate bid.
Recently, Tether, the widely used stablecoin, finds itself under the regulatory microscope. Speculation abounds about potential negotiations for a substantial settlement and the prospect of winding down operations, akin to Binance’s recent challenges. Some observers even anticipate a forced disassociation between Tether and Bitfinex.
One noteworthy concern on the regulatory horizon for Tether is the possibility of facing charges related to USD counterfeiting. Industry analysts contend that this potential charge carries more significant implications than the Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) violations often associated with such cases.
Information for this story was found via Photos and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
