Brock Pierce’s Legal Battles in Puerto Rico Unveiled by NYT

Bitcoin industry veteran Brock Pierce aimed to revitalise Puerto Rico’s economy through cryptocurrencies, yet found himself entangled in legal disputes and conflicts with business partners. This was reported by The New York Times.

After relocating to the island in 2017, Pierce, along with other enthusiasts, joined the Puertopia project—an initiative to create a hub for crypto investors and tech startups.

During this time, the entrepreneur acquired at least 14 properties, including the hurricane-damaged W beach resort, the Monastery hotel, a hospital in the city of Humacao, and an NFT art gallery.

The newspaper discovered that the revival of the W hotel was mired in unpaid bills and legal disputes. Pierce lost his rights to it after failing to repay a $10 million loan to partner Joseph Lipsey III within the agreed timeframe. Lipsey also accused the bitcoin veteran of misusing funds. Pierce, in turn, unsuccessfully attempted to regain ownership through the courts, describing the loan repayment terms as “devious machinations.”

Local developer Gonzalo Gracia, who assisted in the hotel’s purchase, was unilaterally removed from the project. In a 2022 lawsuit, he claimed he had not received a $790,000 commission from Pierce.

The hospital in Humacao is experiencing financial difficulties, an employee told NYT anonymously. According to him, there is a lack of equipment and he personally is owed “tens of thousands of dollars” in salary. However, Pierce assured the publication that his team has resolved these issues.

The NFT gallery is known to be up for sale, and plans to open a community centre have also not been realised.

In 2023, Pierce asked his yacht manager Hugo De la Uz to repair the boat but did not allocate funds for it. Including this dispute, there are at least three lawsuits against the businessman in local courts. One conflict arose with Puerto Rico beauty pageant director Stephanie del Valle, with both parties making mutual financial claims.

Friends and colleagues speculate that Pierce is running out of money. This summer, a representative of the Puerto Rican basketball team Mets de Guaynabo demanded more than $25,000 from the businessman, which he owed the team under a sponsorship deal.

In comments to NYT, Pierce explained everything as a “misunderstanding” due to confusion over sponsorship terms and expressed willingness to pay the fee. He denies financial problems or any deception on his part and says he is eager to be a driving force for progress in Puerto Rico.

“Transformational projects take time. While some initiatives have faced challenges, others have achieved significant success,” the entrepreneur stated.

Back in June 2021, Brock Pierce spoke about visiting El Salvador on behalf of the industry. The community responded with criticism.

In September 2020, the crypto enthusiast received a notice of a lawsuit for securities fraud.