Yieldstreet tell investors in $89 million worth of marine loans to expect losses

The preparation of the private market assets platform has made an agreement to compensate for some of its legal costs in an illegal series of maritime loans-but its users are less fortunate.

Startup told consumers last week in a letter obtained by CNBC that Leader Street was getting 5 million in a settlement with lenders who defaulted on maritime loans.

But since the company's recovery cost is “over the full amount of the entire settlement”, it is unlikely that investors will see any payment. The company said the deals are being closed and the losses that the financial statements show will be filed by February.

“We recognize that the result is disappointing,” Daily Street said in an investor's letter. “Fail Street pursued this extensive rehabilitation effort as we are determined to eliminate every reasonable position for investors recovery.”

According to a trial against the borrower in the project, Daily Street has dealt with its investors with $ 89 million in loans, which should be supported by 13 ships. Loans float money to companies that separate ships for scrap metal. There are suicide attacks in vessels.

Daily Street lost the track of the ships and then pursued the borrower, which he accused of fraud. Although he won the financial award in several circle powers outside the United States, the borrower avoided paying his assets and refusing to pay for startups.

This incident achieved media coverage and helped eliminate a high -level partnership with it in 2020 Black arcThe world's largest asset manager.

The latest disadvantage is following a CNBC report last month, which has developed consumers in four real estate deals worth $ 78 million, with other $ 300 million contracts on the watch list for potential losses.

This year, Dell Street changed its CEO and announced a new business model that is more inclined to distribute private market funds provided by established Wall Street firms. Goldman sex And Carlyile group.

In a statement provided to CNBC, Dell Street said that investors' letters refer to maritime loan deals from 2018 and 2019, which is in an asset class that the firm no longer offers.

“Although funds and eventually the amount of investors is much lower than the amount, this settlement allows us to bring legalization that can otherwise continue indefinitely.”

Startup said that the firm “takes the responsibilities of his responsibilities seriously and, during his efforts to restore his funds, pushes his funds forward in trying to save his investors and has absorbed significant losses along with his investors.”

Arman, an investor who stirred in maritime loans in 2019, in 180,000, described the result as bitter disappointment. After receiving the VILED 16,000 in a class action settlement, which is in a class action settlement associated with maritime deals, it estimates that it has lost more than 90 % of its original investment.

The CNBC is stopping the last name of Arman from publishing on its request.

“My mother passed away in 2018, and I didn't know where the money was to be kept,” Arman said. “I thought it was safe to keep it, and not.”

The maritime loan contract in relation to production was to be firm in six months, which is a relatively short -term investment.

Instead, he spread the six -year story for Arman, who works as a firefighter and paramedic near the West Coast.

“They are now washing the hands of the whole thing,” he said. “They are taking Million 5 million to cover their expenses, which investors don't care.”