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 facing more scrutiny after a failed series of marine loans. While the company managed to secure a $5 million settlement, investors are unlikely to see any returns. Here’s a breakdown:

• Settlement, No Recovery for Investors: Yieldstreet reached a $5 million settlement with borrowers who defaulted on marine loans. However, the company’s recovery costs exceed the settlement amount, meaning investors are unlikely to receive any repayment.
• Failed Marine Loan Deals: Yieldstreet facilitated $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.
• Legal Battles and Losses: While Yieldstreet won monetary awards in some jurisdictions, the borrower avoided payment by concealing assets. This episode contributed to the collapse of a partnership with BlackRock in 2020.
• Widespread Losses: This news follows reports of $78 million in losses for Yieldstreet customers in four real estate deals, with approximately $300 million in other deals under watch for potential losses.
• New Business Model: Yieldstreet has shifted its business model, now focusing on distributing private market funds from established Wall Street firms.
• Investor Disappointment: Investors like Arman, who invested $180,000 in the marine loans, are facing significant losses, with some estimating a loss of over 90% of their initial investment.

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