Puerto topia failure: Bitcoin vet Brock Pierce gets legal problems instead of a crypto hub

Instead of a crypto hub, Brock Pierce has created legal disputes and debts, with at least three lawsuits pending.

According to The New York Times, Bitcoin (BTC) veteran Brock Pierce planned to revive Puerto Rico’s economy with cryptocurrency but became mired in legal wrangling and infighting with his business partners.

After moving to the island in 2017, Pierce and other enthusiasts joined the “Puerto topia” project, a hub for crypto investors and tech startups.

Since then, the entrepreneur has purchased at least 14 properties, including the hurricane-damaged W Beach Resort, the Monastery Hotel, a hospital in Humacao, and an NFT art gallery.

Who is Brock Pierce?

Brock Pierce is an American entrepreneur and former child actor. However, in the crypto industry, he is known as an active speaker of lectures on blockchain and a co-founder and consultant of Blockchain Capital.

Pierce was one of the founders of the EOSIO protocol developer Block.one and Blockchain Capital, whose portfolio includes Bitfury, Blockstream, Coinbase, Kraken, Parity Technologies, Ripple, ShapeShift, and many other well-known firms.

Pierce was also chosen as the director of the Bitcoin Foundation. Because of that, several people resigned, claiming that Pierce was once involved in allegations of child abuse. He was not indicted in court and denied his guilt.

Legal problems in crypto utopia

The revival of the W Hotel led to unpaid bills and legal problems, per the New York Times. Pierce lost ownership of the hotel after failing to promptly repay partner Joseph Lipsey III $10 million.

All the stuff he moved to Puerto Rico for, and he’s talking about, he’s not doing.

He also accused the Bitcoin veteran of misusing funds. Pierce, in turn, unsuccessfully tried to restore ownership through the courts, calling the loan repayment terms “insidious machinations.”

Local developer Gonzalo Gracia, who helped organize the hotel purchase, was unilaterally removed from the project. In a 2022 lawsuit, he said he never received $790,000 in commission from Pierce.

One of its employees said the hospital has also faced financial difficulties. According to him, the hospital needs more equipment, and he has yet to receive tens of thousands of dollars in salary.

The NFT gallery was put up for sale, and plans to open a community center have also yet to be realized.

Lawsuits against Pierce

Pierce reportedly asked his yacht manager, Hugo De la Uza, to repair the boat but did not allocate funds for this a year ago.

The yacht he used to ferry friends back and forth from the W. Most of the guests were Americans that he was trying to convince to give him money.

Including this trial, there are at least three lawsuits against the businessman in local courts. Another conflict is related to the director of the beauty pageant in Puerto Rico, Stephanie del Valle.

In the 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 as part of a sponsorship deal.

Pierce’s acquaintances believe that he is running out of money. However, Pierce himself, in a conversation with the NYT, considers the events a misunderstanding and says that he is ready to contribute. He denies any financial problems or deception on his part and says he is enthusiastic about becoming a driving force for progress in Puerto Rico.

Puerto Rico: a new tax haven for bitcoin millionaires

Many U.S. residents choose Puerto Rico as a tax haven for developing crypto businesses.

The main reasons for changing their geolocation are the favorable tax residency, the excellent climate of the Caribbean islands, and the undeveloped space where you can build a new business and develop existing projects, according to the New York Times.

Puerto Rico has been this hidden gem, this enchanted island that’s been consistently overlooked and mistreated. Maybe 500 years later, we can make it right.

Mr. Clemenson, Lottery.com co-founder

Act 22, passed in 2012 to save the economy from collapse and later reformed, provides the benefits. It exempts passive income and capital gains taxes and applies only to immigrants.

Since 2018, American entrepreneurs who made their fortunes in cryptocurrency have begun to move to Puerto Rico actively. Pierce has become the leader of this movement and said the community members are driven by compassion, respect, and financial transparency.