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

## Yieldstreet Recovers Legal Costs, Investors Left High and Dry

Yieldstreet, the private market assets platform, has reached a settlement to recoup some legal expenses related to a failed series of marine loans. However, this recovery comes at the expense of its investors, who are unlikely to see any return on their investments.

• Settlement Details: Yieldstreet secured a $5 million settlement from borrowers who defaulted on marine loans.
• Investor Impact: Despite the settlement, investors are unlikely to receive any repayment due to the company’s recovery costs exceeding the settlement amount. Financial statements showing losses will be filed by February.
• The Marine Loan Saga: Yieldstreet invested $89 million in loans backed by 13 ships, intended for companies dismantling ships for scrap metal. The company lost track of the ships and accused the borrower of fraud.
• Past Issues: The marine loan debacle contributed to the collapse of a partnership with BlackRock in 2020. This news comes after reports of wiped-out investments in real estate deals.
• New Direction: Yieldstreet has changed its CEO and shifted its business model to distribute private market funds from established Wall Street firms.
• Investor Perspective: One investor, who invested $180,000 in the marine loans, estimates losing over 90% of their investment. They expressed disappointment, highlighting the long-term impact of the failed investment.
• Yieldstreet’s Stance: Yieldstreet stated the settlement allows them to bring closure to litigation and that they take their fiduciary responsibilities seriously.

For more details, you can read the original article on CNBC: [Link to CNBC Article (replace with actual link)](https://www.cnbc.com/2024/01/11/yieldstreet-settles-marine-loan-case-investors-likely-to-get-nothing.html)