JAKARTA - Brock Pierce, founder of USDT Tether stablecoin publisher, was forced to face legal problems in Puerto Rico. This crypto billionaire, who has a wealth of US$1 billion (Rp16 trillion), is entangled in a series of legal cases that emerged from the failure of his business projects on the Caribbean island.
Initially, Pierce was interested in moving to Puerto Rico thanks to Act 60 tax incentives designed to attract high-income individuals and crypto entrepreneurs. However, Pierce's big ambition to make Puerto Rico a global crypto center is now facing tough challenges.
One of Pierce's main projects is the acquisition of the W Hotel in Vieques, an island east of Puerto Rico. The hotel, which is the main magnet for Vieques tourism, was destroyed by Hurricane Maria, a 5-category storm that destroyed the Caribbean in 2017. Pierce plans to restore the hotel's glory, but this effort has been hampered by various issues, including legal disputes and arrears in payments.
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The problem escalated as Logan Lipsey, a logistics entrepreneur who lent $4 million to the hotel project, took control of W Hotel. Lipsey accused Pierce of abusing funds that should have been allocated for hotel renovations, diverting it to luxury parties. These allegations are further exacerbated by Lipsey's claim that Pierce tried to touch him during a dispute at another hotel.
Although Pierce firmly denies all these accusations, the two sides are currently in talks to reach a peace deal. This legal case comes amid the dissatisfaction of local communities and business people in Puerto Rico against Pierce projects. Criticism was made that Pierce's initiative prioritized personal interests rather than providing economic benefits to local communities.
With the uncertainty surrounding the future of the Pierce project in Puerto Rico, the outcome of this legal dispute will be decisive not only for Pierce's personal wealth, but also perceptions of crypto investment in the region. This is a crucial moment, especially when Puerto Rico is trying to attract more crypto investors to support its economic growth. Pierce's failure to maintain its projects could have a negative impact on the crypto investment climate on the island.
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