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

## Yieldstreet’s Marine Loan Debacle: Investors Left High and Dry

Yieldstreet, a platform for private market assets, is in the news again, and it’s not good news for its investors. Here’s a breakdown of the situation:

• Settlement, No Recovery for Investors: Yieldstreet secured a $5 million settlement related to defaulted marine loans. However, the company’s recovery costs are so high that investors are unlikely to see any of their money back.
• Failed Marine Loans: The loans, totaling $89 million, were supposed to be backed by 13 ships used for scrap metal. Yieldstreet lost track of the ships and accused the borrower of fraud.
• Legal Battles and Losses: While Yieldstreet won monetary awards in some jurisdictions, the borrower avoided payment. The company is now closing the deals and filing financial statements showing losses.
• Impact on Investors: Investors like Arman, who invested $180,000, are facing significant losses. He estimates he lost over 90% of his initial investment.
• Broader Context: This follows news of wiped-out investments in four real estate deals and a new business model shift for Yieldstreet. The marine loan deals are from 2018 and 2019, and the company no longer offers this asset class.
• Yieldstreet’s Response: The company states it takes its fiduciary responsibilities seriously and advanced its own funds to protect investors, absorbing significant losses alongside them.

For more details, you can read the original article on CNBC: [Link to CNBC Article](https://www.cnbc.com/2024/05/02/yieldstreet-investors-in-marine-loans-face-total-losses.html)