Yieldstreet has faced multiple legal actions due to misleading investors and misrepresenting risks. These cases highlight systemic transparency issues and reinforce the need for greater accountability in Yieldstreet’s investment offerings.
Summary:
Yieldstreet investors filed a class action lawsuit over ship-scrapping loans that resulted in $87 million in losses.
The lawsuit alleged that Yieldstreet misrepresented the risks, leading to significant investor harm when the ships securing the loans vanished.
The case resulted in a $6.2 million settlement for affected investors.
Summary:
In 2023, Yieldstreet settled with the SEC for $1.9 million over allegations that it failed to disclose critical investment risks to investors.
The SEC determined that Yieldstreet’s marketing and disclosures were misleading, reinforcing concerns about transparency and accountability.
Implications for Investors
These legal actions validate investor concerns regarding Yieldstreet’s misleading marketing and lack of transparency. The class action lawsuit and SEC settlement demonstrate a pattern of misrepresentation that has resulted in substantial financial losses.
As investors, we demand transparency—including access to profit and loss statements, clear investment disclosures, and responsible financial management to prevent future misconduct.