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A Russian Oligarch’s $75 Million Superyacht Just Got Auctioned Off in Gibraltar

It's the first public sale of an oligarch's seized asset since russia invaded ukraine., rachel cormack.

Digital Editor

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What becomes of a sanctioned Russian billionaire’s superyacht after it’s seized ? In the case of the $75 million Axioma , the end result was an auction for way below its market value.

The lavish 236-footer, which was seized from Russian steel magnate Dmitry Pumpyansky in March, attracted 63 bids at a sale in Gibraltar. A true watershed moment, it is the first public auction of an oligarch’s asset since Russian forces invaded Ukraine in February.

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The superyacht, which boasts six luxurious guest cabins, an infinity pool, a spa and a 3-D cinema, was detained by the Gibraltar government after a legal claim from JP Morgan said Pumpyansky’s holding company Pyrene Investments owed the bank more than $20 million.

The Office of the Admiralty Marshal in Gibraltar confirmed on Tuesday that 63 bids were received for Axioma , but refused to reveal the value of the bids, as reported by the Guardian .

“Axioma” docked in Marseille, France in June.  Gerard Bottino / SOPA Images

“The successful bidder will be selected by the Admiralty Marshal but details of the bidder and the value of the offer will remain confidential,” the court said in a statement. “Details about the sale value of the vessel will be made available once the transaction has been completed which could take place in approximately 10 to 14 days.”

James Jaffa, a lawyer for British firm Jaffa & Co, told the Guardian that he expects Axioma to sell for “way below” $20 million.

The west has confiscated billions worth of assets since March. British and American authorities have previously said they would seek to funnel the proceeds of sold assets back into Ukraine. This auction has attracted controversy, though, because Axioma has been sold not for the benefit of the Ukrainian people, but for the US investment bank.

Still, the has set a “benchmark” for other banks looking to recoup losses by auctioning assets.

“ Axioma will be a watershed moment for assets that have bank financing against them because all the other banks will realize that the asset can be sold and that they can get some or all of their money back,” Jaffa adds.

Rachel Cormack is a digital editor at Robb Report. She cut her teeth writing for HuffPost, Concrete Playground, and several other online publications in Australia, before moving to New York at the…

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Inside Axioma: The First Seized Superyacht To Go Up For Auction

Time for a sneak peek.

Designer superyacht Axioma is going to be the first seized Russian vessel to go to auction. It has a slightly unusual past though . Here’s how it used to look before it got put under lock and key (as well as a video showing the little-known side of superyachting you’ve probably never thought about).

News broke on Wednesday that Axioma, a gorgeous $75 million superyacht, will be the first seized Russian schooner to go to auction – in a single day, and without reserve.

Axioma was delivered in 2013 and owned by billionaire Dmitry Pumpyansky, who made his fortune in the gas and steel industries. According to Boat International , Axioma will be flogged off on August the 23rd, 2022. Axioma was seized by authorities in Gibraltar in March on the basis of an outstanding 12.5 million loan due to J.P. Morgan, which the yacht’s international management company had not paid. Around this time, authorities realised Pumpyansky was included on sanctions lists – and discovered he was the beneficiary (read: owner) of the vessel. 

Last month, a Gibraltar court ruled that Axioma should be sold at auction on an “as is, where is” basis, to give J.P. Morgan its money back. The fact that it’s a no reserve auction has sparked rumours it will sell for much less than it’s worth (its estimated value is $75 million).

Axioma is one of the rare Russian-owned superyachts that people could charter when its owner wasn’t using it. It was very popular and reading its list of features, it’s easy to see why. The 236-foot (72-meter) yacht easily takes 12 guests (and a crew of 20), has a jacuzzi on the sun deck, a pool, a steam room, a sauna, an owner suite with its own private deck, a smorgasbord of water toys, various lounge areas and a 3D private cinema.

As Autoevolution reports, it was built by Dunya Shipyard, delivered under the name Red Square, and was most recently refitted in 2020, “when it also received the striking turquoise-blue paint job on the hull.” Speaking of that striking blue paint job, videos on Youtube, by Jared Watney – a former employee on a superyacht and a luxury content creator – show what Axioma used to look like before it got put under lock and key in Gibraltar.

According to its page on Yacht Charter Fleet , Axioma was used for cruising around the Caribbean in winter (October to April) and the Mediterranean in summer (May to September). Cruising the Med would cost between 450,000 euros (AUD $655,000) and 635,000 euros (AUD $925,000) a week (plus expenses) and cruising the Caribbean would cost between 295,000 euros (AUD $430,000) and 595,000 euros (AUD $867,000) a week (plus expenses).

RELATED: Superyacht Captain Shares ‘Unbelievable’ High Sea Stories

Watney’s videos, posted in January 2022, before Axioma got seized, show what the superyacht looked like inside, and how it would prepare for guests (including one area of the boat where everything could be moved to create a dance floor). He has also shown off the side of yachting you don’t often see, showing what happens on a superyacht when it’s in between guests, explaining why crew can actually be busier at that time than at any other.

Have a gander at the above video if you’re interested. And if you’ve got $75 million USD burning a hole in your pocket, why not take a trip to Europe on August the 23rd and take a punt at buying Axioma yourself…

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Gibraltar sells Russian oligarch's yacht for $37.5 million

September 27, 2022 / 7:37 PM EDT / CBS/AFP

Gibraltar on Tuesday sold a superyacht belonging to Russian oligarch Dmitry Pumpyansky for $37.5 million following its seizure in March under Ukraine war sanctions, judicial authorities said.

Gibraltar's Admiralty Marshal, a specialist British maritime court that handles the sale of ships, did not release the buyer's name.

The 72-metre (236-foot) vessel, MV Axioma, was seized on March 22 following a complaint filed by the U.S. bank J.P. Morgan, authorities in the tiny British enclave at the southern tip of Spain said at the time.

The move came shortly after Pumpyansky — head of TMK, Russia's biggest manufacturer of steel pipes — was added to the list of tycoons targeted by EU and U.K. sanctions after Russia invaded Ukraine in February.

Gibraltar's Supreme Court had in June ordered that the yacht be sold at auction, with the Malta-flagged Axioma attracting 63 bids.

The funds raised will be used to compensate the oligarch's creditors.

In December 2021, J.P. Morgan granted a loan of 20.5 million euros ($21.7 million) to a company registered in the British Virgin Islands whose shareholders included a Cypriot firm owned by Pumpyansky.

But the bank saw Pumpyansky's inclusion on Britain's sanctions list as a breach of the loan contract since it led to the freezing of his assets.

Dozens of yachts allegedly tied to Russian oligarchs have been seized since Russia began its offensive in Ukraine seven months ago. In April, Dutch authorities seized 14 yachts , 12 of which were still under construction. U.S. and Spanish authorities took a $90 million super-yacht docked in Palma de Mallorca with ties to Viktor Vekselberg; and the U.S. also seized a $300 million vessel in Fiji.  Italy froze a $700 million mega-yacht linked to "prominent elements of the Russian government."

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Axioma superyacht to become first vessel seized under Russian sanctions to be auctioned

The £65m luxury craft will be sold by the gibraltar government on tuesday, with proceeds due to go to jp morgan not ukraine.

20 August, 2022

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Your weekly update from the UK and Europe

A $75 million superyacht seized from a Russian oligarch, which has a glass elevator and infinity pool, is going under the hammer. Take a look inside.

• A 236-foot superyacht seized from a sanctioned Russian oligarch is being auctioned off.
• The five-deck Axioma has a glass elevator, infinity pool, and 3D cinema, among other amenities.
• Take a look inside.

A 236-foot, five-deck superyacht seized from a sanctioned Russian oligarch is being auctioned off, with the deadline for bids set for Tuesday.

Buyers sense a bargain at first invasion-related sale of oligarch's $75m superyacht, says auction lead

The Axioma was seized by Gibraltar in March. It's one of several Russian-owned superyachts that have been seized since Russia invaded Ukraine, but will be the first to go under the hammer, according to its auctioneer.

France seized a $120 million super-yacht owned by Russian oligarch and Putin confidant Igor Sechin – a man dubbed 'Darth Vader' by Russian media

The Axioma is being auctioned to repay money its owner Dmitry Pumpyansky owes to US bank JPMorgan, according to court documents cited by Bloomberg.

Source: Bloomberg

SuperYachtFan values the Axioma at $75 million. It was previously available for the super-wealthy to charter for up to 635,000 euros, or $633,000, a week.

Source: Superyachtfan

The luxury vessel can sleep up to 12 guests in its six cabins...

...each with its own color scheme.

There's room for up to 20 crew members.

Guests can relax in a jacuzzi or swim in an infinity pool.

Above the infinity pool is a large outdoor lounge that can be converted into a dance floor, according to Howe Robinson Partners, the firm auctioning the Axioma.

Source: Howe Robinson Partners

Below deck, there's also a sauna, steam room, and gym.

A glass elevator ferries passengers between the yacht's five decks, which boast a helipad, media room, and 3D cinema, among other amenities.

The elevator brings VIP guests to the "Owner's Study." From there, a small corridor leads to the master bedroom, which features 180-degree panoramic windows and a ceiling that opens "to reveal a glass roof for laying under the stars," per the auctioneers.

The aft deck is "great for relaxing in the tub and having a cocktail while the sun goes down," the auctioneers say. The fore deck can be used "as a golf driving range complete with biodegradable, fish food, golf balls," they say.

Double sliding doors lead from the aft deck to the main saloon, which has a double-height atrium.

There's been a "staggering amount of interest" in the vessel, its auctioneer Nigel Hollyer, of Howe Robinson, told Bloomberg on Monday. The sealed bid auction closes at 1pm local time Tuesday, Hollyer told the Guardian.

Source: The Guardian

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Seized £63m Russian superyacht Axioma sells at Gibraltar auction

Wednesday, August 24th, 2022

Written by: Marine Industry News

A £63m superyacht, once owned by sanctioned steel billionaire Dmitry Pumpyansky, has attracted 63 bids at auction in Gibraltar. The yacht has been stranded in the British Overseas Territory since March this year, when authorities arrested it.

It is the first public auction of a seized Russian asset since Putin invaded Ukraine in February.

The 72.5-metre Axioma , which has five decks, six cabins, an infinity pool, spa and 3D cinema, was designed by Alberto Pinto, and built by Dunya Yachts in Turkey in 2013.

Originally named Red Square , the yacht had been available for charter for US$558,500 (£474,000) a week.

On Tuesday (23 Aug 22), The Office of the Admiralty Marshal in Gibraltar confirmed that “63 bids have been received” for Axioma but refused to reveal the value of the bids for the yacht.

Because it was listed for one day only, reports anticipated that the yacht would likely sell for less than its estimated value.

“The successful bidder will be selected by the Admiralty Marshal, but details of the bidder and the value of the offer will remain confidential,” the court said in a statement. “Details about the sale value of the vessel will be made available once the transaction has been completed, which could take place in approximately 10 to 14 days.”

The auction of the superyacht has attracted controversy, because it was sold by Gibraltar on behalf of JP Morgan, rather than for the benefit of the Ukrainian people.

The US investment bank says that Pumpyansky’s holding company Pyrene Investments owes it more than £17m from an unpaid loan. JP Morgan says it can no longer accept loan repayments from Pyrene, due to the nature of the economic sanctions on 58-year-old Pumpyansky, and asked Gibraltar to detain and sell the yacht in lieu of the loan.

There was an “unexpected late surge by prospective buyers” around the world for the vessel, Nigel Hollyer, broker to the admiralty marshal of the supreme court of Gibraltar who led the auction,  told the Guardian last week .

James Jaffa, a lawyer for British firm Jaffa & Co, said the vessel was likely to sell for “way below” €20m. The broker, crew, shipyard and maintenance fees will be paid ahead of the bank.

A large number of yachts and other valuable assets owned by Russian oligarchs have been seized by world governments since the start of the war this year .

The Russian-owned superyacht Amadea had been costing the Fijian state over half a million US dollars a week to maintain , while docked at the Fijian port of Lautoka earlier this year. The yacht has now been removed from Fiji amid legal wrangling.

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3 responses to “Seized £63m Russian superyacht Axioma sells at Gibraltar auction”

Your wording “It is the first public auction of a seized Russian asset since Putin invaded Ukraine in February” is misleading. Whilst it maybe factually accurate it carries the implication that the seizure and subsequent auction of the yacht is directly due to the Owner being sanctioned which is not the case. The yacht was auctioned (as you later explain) on behalf of JP Morgan due to unpaid loans.

borderline fraud on the part of Gibraltar and JP Morgan.

Seizing an asset with a loan against it is one thing, but seizing it after refusing to accept payment for the loan is probably more immoral than anything the former owner had done.

Sets a precedent meaning no asset with a loan against it, is secure.

Not quite accurate Leroy. JP Morgan were unable to accept payment as payment could not be made due to the Russian Bank Embargo and removal from the SWIFT transfer system. They did not ‘refuse payment’ Facts please!

This article was written and/or edited by the UK-based MIN team.

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Superyacht Seized From Sanctioned Russian Billionaire Sells for Undisclosed Amount

By Victoria Scott

Posted on Aug 23, 2022 2:44 PM EDT

4 minute read

Russian billionaire Dmitry Pumpyansky is really just your average oligarch. He’s tied to a $2 billion dollar net worth, alleged close ties to Vladimir Putin , a private art gallery , and of course, a 236-foot superyacht with a dozen bedrooms on board. Or at least he did own the yacht, until earlier this year when J.P. Morgan seized it , followed by then auctioning it off on Tuesday.

The reason for the seizure is directly due to international sanctions on Russian oligarchs in the wake of Russia’s invasion of Ukraine . Pumpyansky, who has been identified by the U.S. government as an oligarch in the 2017 Countering America’s Adversaries Through Sanctions Act, served as the guarantor of a $20 million loan with JP Morgan when the invasion began. He, along with many other Russian billionaires, was sanctioned shortly after the invasion . As a result, and according to court papers obtained by Reuters, the sanctions ultimately “constitut[e] an event of default,” as it is now legally impossible for Pumpyansky to pay back the loan. As collateral for the defaulted loan, JP Morgan seized the superyacht and brought it to public auction at the Gibraltar Admiralty Court (where the ship was impounded). It’s the first seized Russian yacht actually sold on the open market, rather than just confiscated, since sanctions began earlier this year.

The yacht itself is the Axioma, a 236-foot-long vessel launched in 2013 that was formerly available as a charter ship. As the listing and photos highlight, it has a beach-house style interior designed by Alberto Pinto , and it features a 3D cinema room, multiple jacuzzis, a steam room and sauna, a gym, onboard jet-skis, and an inflatable water slide that stretches from the sun deck to the water itself. It was nominated as a finalist for several 200+ foot yacht awards, which I did not know existed.

The original cost of the yacht was $75 million (and it was going for nearly $550,000 a week during peak season as a charter vessel). According to the Guardian , which spoke with the broker of the auction, there was an “unexpected late surge” of interest from potential buyers who wanted to pick up the Axioma as a “bargain” at auction. According to the broker, 30 people flew into Gibraltar where the vessel was docked to check it out in person before it was sold Tuesday. It’s unknown if anyone did actually get a deal on the Axioma, as it was sold at a sealed-bid auction, but I’m going to wager a guess that if you have to ask, you probably couldn’t afford it anyway.

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Sanctioned Billionaire’s Yacht Attracts 63 Bids at Auction

A luxury yacht once owned by sanctioned billionaire Dmitry Pumpyansky has attracted 63 bids in Gibraltar, in the first public auction of an asset seized since the start of the war in Ukraine.

The five deck, 72-meter (236 feet) yacht Axioma was put up for sale after JPMorgan Chase & Co. called in a 20.5 million-euro ($20.4 million) loan tied to the vessel. The floating palace, which boasts an infinity swimming pool plus a 3D cinema, was impounded in March by authorities on the British territory at the entrance to the Mediterranean Sea.

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Russian oligarch’s seized superyacht sold for $37.5m

Axioma, which had been owned by Dmitry Pumpyansky, auctioned after being impounded in Gibraltar

A luxury superyacht taken from a Russian oligarch facing sanctions has been sold to an undisclosed buyer for $37.5m (£35m) in the first sale of its kind since Russia invaded Ukraine.

The 72.5-metre Axioma was seized from the steel billionaire Dmitry Pumpyansky in March after sanctions by the UK, EU and the US .

However, the yacht, which features a swimming pool, a 3D cinema room, a gym, a Jacuzzi and a fully equipped spa – was not sold for the benefit of the Ukrainian people but for a US investment bank, JP Morgan , which claims Pumpyansky owes it €20.5m.

The yacht was impounded by the Gibraltar authorities in March, after a court claim from JP Morgan. The Office of the Admiralty Marshal, a branch of Gibraltar’s supreme court, oversaw its auction in August, which attracted 63 bids.

“The Admiralty Marshal has today sold the MY Axioma following payment into court of $37.5m by the successful bidder,” the court said in a statement on Tuesday. “The bid was selected after completion of an enhanced due diligence process, but the Admiralty Marshal will not be disclosing the identity of the buyer.”

Pumpyansky was until March of this year the owner and chair of the steel pipe manufacturer OAO TMK, a supplier to the Russian state-owned energy company Gazprom. The UK said the billionaire, who it said had built up an estimated £1.84bn fortune, was one of the oligarchs “closest to Putin” .

The yacht was detained by the Gibraltar government after a legal claim from JP Morgan , which said Pumpyansky’s holding company Pyrene Investments owed it €20.5m.

JP Morgan said the fact the billionaire had been subjected to sanctions meant the terms of the loan had been breached because it legally could not accept repayments from Pyrene, and asked the Gibraltar courts to detain and sell the yacht.

The yacht, the work of the superyacht designer Alberto Pinto, was built by Dunya Yachts in Turkey in 2013. The boat, which was originally named Red Square before being renamed Axioma, was available for other millionaires to charter for $558,500 a week.

“With its luxurious interiors, vast array of onboard facilities and a highly trained and professional crew, a luxury yacht vacation onboard motor yacht Axioma promises to be nothing short of spectacular,” the charter listing states.

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From yachts to lavish estates, tracking Russian assets seized so far

By Tal Yellin , CNN

Published April 13, 2022

Updated April 27, 2022

Countries are on the hunt for sanctioned Russian assets after Russia’s invasion of Ukraine in February. Thousands of Russians have since been sanctioned by the United States, the European Union, and the United Kingdom, among others. Superyachts and multimillion-dollar properties have already been seized or frozen by authorities in Italy, France, Spain, the UK and Gibraltar. The United States has also launched KleptoCapture, a task force focused on those who violate sanctions and the seizing of their assets.

This interactive will continue to track known developments and help show where sanctioned Russians park their money outside of Russia. Except for Igor Sechin and Sergei Chemezov, no other oligarchs or related persons mentioned in this story responded to requests for comment from CNN.

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Other assets

April 14, 2022

“dilbar”  linked to    alisher usmanov   valued at $600-$750 million in hamburg, germany.

Germany has impounded the “Dilbar,” a superyacht connected to a Russian oligarch in Hamburg, the country’s embassy in the US tweeted . The yacht belongs to the sister of Alisher Usmanov and is worth between $600 to $750 million, according to the German Federal Criminal Police Office. Usmanov is one of Russia’s wealthiest billionaires with vast domestic and international holdings. The US government sanctioned him in early March in a campaign targeting Putin’s allies, stating Usmanov is alleged to have “financial ties” to Putin. In March, Italy’s financial police seized his real estate and assets worth about $90 million. Usmanov has also been sanctioned by the European Union.

April 12, 2022

Assets  linked to    roman abramovich   valued at over $7 billion in jersey.

Authorities in the Channel island of Jersey froze more than $7 billion worth of assets “suspected to be connected to” Russian billionaire Roman Abramovich, according to a government statement . The frozen assets are either located in Jersey or owned by Jersey incorporated entities, the statement said. The States of Jersey Police also executed search warrants on premises “connected to the business activities” of Abramovich. Abramovich made his fortune in steel and investments and was sanctioned by the UK in March, citing his decades-long relationship with Vladimir Putin. In a statement at the time , the UK government noted that “he is one of the few oligarchs from the 1990s to maintain prominence under Putin.” These frozen assets represent around half his net worth, according to the Bloomberg Billionaire Index .

April 11, 2022

Properties  linked to    nikita mazepin   valued at $114.3 million in sardinia, italy.

A real estate compound, “Rocky Ram,” linked to Nikita Mazepin and his oligarch father Dmitry was seized in Sardinia, the Italian financial police confirmed in a statement. The police said the properties are worth 105 million euros (about $114.3 million). Nikita, a former Formula 1 Haas team driver, and his father were included on a list of individuals sanctioned by the EU in early March. The sanction list described Mazepin Sr. as “a member of the closest circle of Vladimir Putin” saying he and 36 other ”businesspeople” met with Putin and other government officials to discuss how sanctions would affect Russia. In early March, Mazepin Sr. sold his controlling stake in Uralchem Group, one of the largest producers of nitrogen and phosphate fertilizers in Russia, and resigned as CEO from Uralchem JSC, a subsidiary, according to a company statement .

April 7, 2022

Assets  linked to    sanctioned russians   valued at $7.83 billion in switzerland.

Switzerland has so far frozen 7.5 billion Swiss francs (about $7.83 billion) of sanctioned Russian assets, according to a State Secretariat for Economic Affairs (SECO) spokesperson. The number of frozen assets increased from March 24, when 5.75 billion Swiss francs (about $6.18 billion) were initially frozen. Frozen assets include 11 properties throughout Switzerland. No identifiable information was revealed and no specific assets were mentioned in the initial statement. After Russia’s invasion of Ukraine, Switzerland broke from traditional neutrality and adopted EU sanctions.

April 5, 2022

Assets  linked to    sanctioned russians   valued at $3 billion in belgium.

Belgian authorities have frozen $3 billion in Russian assets and blocked $215 billion in transactions since the start of economic sanctions, according to Belgian Minister of Finance Vincent Van Peteghem. The frozen assets belong to 877 individuals and 62 entities on the European sanctions list, according to the statement from the Belgian Finance Ministry. The blocked transactions are the result of other restrictions imposed by the European Union on Russia.

April 4, 2022

“tango”  linked to    viktor vekselberg   valued at $90 million in mallorca, spain.

Spanish authorities seized a superyacht named “Tango,” which they say is owned by Russian oligarch Viktor Vekselberg in Mallorca, according to a statement from the Spanish Civil Guard. The detained yacht was part of an operation with US federal agents and was carried out under a Spanish court order, the statement said. Vekselberg runs the Russian investment company Renova Group. He is worth approximately $16.5 billion, according to the Bloomberg Billionaires Index. He was sanctioned by the United States and is “under investigation for tax fraud, money laundering and document forgery trying to hide the ownership of this superyacht to avoid sanctions” and is “very close to (Russian President) Vladimir Putin,” the Spanish Civil Guard said. Vekselberg’s case marks the first seizure for the newly formed US task force, KleptoCapture. The yacht is 78 meters long (about 256 feet) and is valued at nearly $90 million, per the US Department of Justice.

March 29, 2022

“phi”  linked to    a russian businessman   valued at $50 million in london, england.

The United Kingdom detained the “Phi” yacht belonging to an unnamed-Russian businessman with ties to Russian President Vladimir Putin and the Russian regime, according to the UK Department for Transport. The Dutch-built vessel is docked in East London’s Canary Wharf for the superyacht awards, and was planning to depart March 29. The Department of Transport claims that the ownership of the boat was “deliberately well hidden.” It sails under the Maltese flag and is registered to a company based in the Caribbean islands of St. Kitts and Nevis. The 192-foot yacht is worth approximately £38 million (about $50 million).

March 23, 2022

Assets  linked to    sanctioned russians   valued at $800 million in france.

French authorities have frozen assets linked to sanctioned Russian oligarchs valued at $800 million, according to French government spokesperson Gabriel Attal. The European Union’s latest round of sanctions in early March against Russia included measures targeting 160 oligarchs and Russian politicians. “There will be no taboo if we need to go further,” Attal said about any additional sanctions.

March 22, 2022

Assets  linked to    sanctioned russians   valued at $431 million in the netherlands.

The Netherlands has frozen nearly 392 million euros (about $431 million) in Russian assets, the Dutch Ministry of Finance told parliament in a letter seen by CNN. The ministry said that further asset freezes were expected. The European Union’s latest round of sanctions in early March against Russia included measures targeting 160 oligarchs and Russian politicians.

March 21, 2022

“axioma”  linked to    dmitry pumpyansky   valued at $75 million in gibraltar.

Authorities in Gibraltar have detained the “Axioma” yacht linked to Russian billionaire Dmitry Pumpyansky, according to UK and Gibraltar government statements. Pumpyansky was sanctioned by the EU and UK and was the beneficiary of TMK PAO, Russia’s largest oil and gas steel pipe maker. He also resigned from the TMK PAO’s board of directors, the company announced . The 240-foot yacht is worth approximately $75 million, according to SuperYachtFan . Gibraltar’s ports had been closed to sanctioned individuals, but the Captain of the Port made an exception after JPMorgan Chase was granted a court order authorizing the seizure. “JPMorgan is acting pursuant to its mortgage rights,” the Gibraltar government said in a statement to CNN. JPMorgan Chase, the largest bank in the United States, said in a statement in early March it was getting out of Russia following the invasion of Ukraine, citing “compliance with directives by governments around the world.”

March 18, 2022

Real estate  linked to    alexey mordaschov   valued at $116 million in sardinia, italy.

The Italian financial police seized a real estate complex belonging to Russian billionaire Alexey Mordaschov in Sardinia, according to Italy’s Prime Minister’s office. Mordaschov is the chairman of Russian mining and steel company Severstal and is one of Russia’s richest men, worth $18.5 billion, according to Forbes . The frozen real estate is worth around 105 million euros (about $116 million), per Ferdinando Giugliano, the media advisor to the Italian Prime Minister. On March 4, Mordaschov’s yacht, named “Lady M” was also seized in Italy. The 213-foot yacht is worth approximately 65 million euros (about $71 million).

March 16, 2022

“crescent”  linked to    an unknown owner   valued at $600 million in tarragona, spain.

Spanish authorities have detained a superyacht, named “Crescent” in the port of Tarragona, according to a statement from Spain’s Ministry for Transport. The 135-meter yacht flies a Cayman Islands flag and has been “provisionally detained” to establish whether it is the possession of a person or entity included in the European Council’s package of sanctions, the statement said. The yacht cost approximately $600 million, according to SuperYachtFan.

Real estate  linked to    Petr Aven   valued at $4.4 million in Sardinia, Italy

The Italian financial police froze a real estate complex belonging partially to Russian oligarch Petr Aven in Sardinia, according to a statement issued by Prime Minister Mario Draghi’s press office. The share of real estate is worth approximately 4 million euros (about $4.4 million), according to the Italian Prime Minister’s office. The billionaire stepped down earlier this month as Director of Russian private bank Alfa Bank and from the board of the investment firm he co-founded, LetterOne, after being sanctioned by the EU and UK . The European Union named Aven as “one of Vladimir Putin’s closest oligarchs,” who “regularly meet” with the Russian President in the Kremlin, and “does not operate independently of the President’s demands.”

Real estate and vehicles  linked to    Alisher Usmanov   valued at $72 million in Italy

Real estate assets and six corporate vehicles belonging to Russian oligarch Alisher Usmanov were seized by the Italian financial police. The seized assets are worth approximately 66 million euros (about $72 million). Usmanov is one of Russia’s wealthiest billionaires with vast domestic and international holdings. The US government sanctioned him in early March in a campaign targeting Putin’s allies, stating he is alleged to have financial ties to Putin. Italy’s financial police had previously seized his real estate in the Golfo del Pevero area in Arzachena on March 4. Those assets are worth approximately 17 million euros (about $18 million).

March 15, 2022

“lady anastasia”  linked to    alexander mikheev   valued at $7 million in palma de mallorca, spain.

Spanish authorities have detained a yacht linked to Russian oligarch Alexander Mikheev, named “Lady Anastasia,” in the port of Palma de Mallorca, according to the Spanish Ministry of Transport. Mikheev is the CEO of Rosoboronexport, the only state organization in Russia that exports weapons and was sanctioned by the EU and the US. The yacht is nearly 48 meters (157 feet) long and was in the news in late February, when a crew member tried to sink the vessel in retaliation for Russia’s invasion of Ukraine. The yacht is worth approximately $7 million, according to a listing on BOAT International.

“Valerie”  linked to    Sergei Chemezov   valued at $140 million in Barcelona, Spain

Spanish authorities seized the “Valerie” yacht reportedly linked to Russian oligarch and former KGB agent Sergei Chemezov in the port of Barcelona, according to Reuters . Chemezov is the chairman of the Rostec conglomerate and a member of the Supreme Council of ‘United Russia’, per EU sanctions . When the US sanctioned Chemezov in 2014 — as part of an effort targeting Putin’s inner circle — the government said he had known Putin since the 1980s and the two lived in the same apartment complex in East Germany. The yacht is worth approximately $140 million and will remain “provisionally immobilized” until authorities can determine its ownership. A spokesman for Chemezov denied that he is tied to the yacht.

March 11, 2022

“sailing yacht a”  linked to    andrey melnichenko   valued at $577 million in trieste, italy.

The Italian financial police seized “Sailing Yacht A” — which could be linked to Russian fertilizer and coal billionaire Andrey Melnichenko — in the port of Trieste, according to Ferdinando Giugliano, the media advisor to the Italian Prime Minister. Melnichenko was sanctioned by the EU on March 9 and has since removed himself from the boards of two companies he founded, Eurochem and SUEK, according to his spokesman Alex Andreev in a statement to CNN. At 469 feet long, the vessel is also the world’s tallest sailing yacht — taller than the Statue of Liberty — and is worth approximately 530 million euros (about $577 million).

March 4, 2022

“villa lazzareschi”  linked to    oleg savchenko   valued at $3.3 million in lucca, italy.

A 17th century villa allegedly owned by Oleg Savchenko, named “Villa Lazzareschi,” was seized by Italian financial police in the province of Lucca, according to a police statement . Savchenko is a member of the State Duma and was sanctioned by the EU. The seized Italian villa is worth approximately 3 million euros (about $3.3 million).

Real estate  linked to    Vladimir Soloviev   valued at $8.7 million in Como, Italy

Real estate properties belonging to Vladimir Soloviev were seized by the Italian financial police in the province of Como, according to a police statement . Soloviev is a Russian pro-Kremlin propagandist and TV/radio journalist, according to EU Council sanctions . The frozen Italian real estate is worth approximately 8 million euros (about $8.7 million).

Real estate  linked to    Alisher Usmanov   valued at $18 million in Arzachena, Italy

A real estate compendium belonging to Russian oligarch Alisher Usmanov was seized by the Italian financial police in the Golfo del Pevero area in Arzachena, according to a statement . The frozen Italian real estate is worth approximately 17 million euros (about $18 million).

Usmanov is one of Russia’s wealthiest billionaires with vast domestic and international holdings, according to the US Treasury. The US government sanctioned him in early March in a campaign targeting Putin’s allies, stating he is alleged to have financial ties to Putin. The US said it sanctioned his private jet and his 512-foot superyacht named “Dilbar.”

“Lena”  linked to    Gennady Timchenko   valued at $55 million in San Remo, Italy

The Italian financial police seized Russian billionaire Gennady Timchenko’s yacht, named “Lena,” in the port of San Remo, according to a police statement . Timchenko is the owner of private investment group, Volga Group. He was sanctioned by the EU in February. When the US government sanctioned Timchenko in 2014, an effort targeting Putin’s inner circle, they stated his “activities in the energy sector have been directly linked to Putin.” The 126-foot yacht is worth approximately 50 million euros (about $55 million).

“Lady M”  linked to    Alexey Mordaschov   valued at $71 million in Imperia, Italy

The Italian financial police seized Russian billionaire Alexey Mordaschov’s yacht, named “Lady M,” in the northern port of Imperia, according to a police statement . Mordaschov is the chairman of Russian mining and steel company Severstal and is one of Russia’s richest men, worth $18.5 billion, according to Forbes . The 213-foot yacht is worth approximately 65 million euros (about $71 million).

March 3, 2022

“amore vero”  linked to    igor sechin   valued at $120 million in la ciotat, france.

French authorities seized a yacht linked to Igor Sechin in the Mediterranean port of La Ciotat, according to the French Finance Ministry . Sechin is the CEO of Rosneft, the Russian state oil company and one of the world’s largest crude oil producers. The yacht, named “Amore Vero” — or “True Love” in Italian — was scheduled to leave the port on April 1 after arriving in January. Sechin was deputy prime minister of Russia from 2008 until 2012. The European Union said his connections to Putin are “long and deep,” with the two men maintaining daily contact. The yacht is worth about $120 million, according to SuperYachtFan. A Sechin spokesman denied that he is tied to the yacht.

Tips: Do you have information to share about seized or frozen Russian assets? Learn how to reach our journalists and help us investigate.

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Russian oil billionaire’s seized $75 million Axioma has become the first seized superyacht to be auctioned by authorities. With no reserve, the 236 feet long vessel may be sold for a throwaway price.

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Trying to sell Russian oligarch's seized luxury assets is running into trouble

Jackie Northam

After Western governments seized millions in assets from Russian oligarchs, a question remains: What should be done with their yachts?

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Two tons of meth disguised as watermelon seized at border; valued over $5 million

From far away, these bright green ball-shaped packages could be mistaken for a massive shipment of piñatas. But the meth-melons are definitely not something you want anywhere near a child's birthday party.

Colorful packages that were made to look like watermelons but instead contained around two tons of meth were discovered at the Otay Mesa Port of Entry Commercial Facility in San Diego, according to U.S. Customs and Border Patrol Protection.

Hidden amongst actual watermelons were 1,220 packages that contained 4,587 pounds of methamphetamine worth over $5 million.

See the meth-filled packages seized by border patrol:

From celery to watermelon: Agents seize nearly 3,000 pounds of meth hidden in celery at Georgia farmers market

How was the meth found?

A 29-year-old man seeking entry into the U.S. from Mexico was selected for a secondary inspection, and the watermelon was taken out of the truck for further examination.

When the drugs were uncovered, the packages were tested and identified before they were seized, and the driver was transferred to Homeland Security Investigations for further investigation.

“I am incredibly proud of our team for their exceptional work over the past few weeks in uncovering sophisticated and diverse smuggling methods," said Rosa E. Hernandez, Port Director for the Area Port of Otay Mesa, in a statement. "As drug cartels continue to evolve their smuggling techniques, we will continue finding new and better ways to prevent these dangerous drugs and other contraband from entering the country."

Julia is a trending reporter for USA TODAY. She has covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can connect with her on  LinkedIn  or follow her on  X, formerly Twitter ,  Instagram  and  TikTok : @juliamariegz

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Exclusive details, guatemalan police arrest 7 accused of trafficking 53 migrants who asphyxiated inside tractor-trailer in texas.

Guatemalan police on Wednesday arrested seven Guatemalans accused of having smuggled 53 migrants from Mexico and Central America who died of asphyxiation in 2022 in Texas after being abandoned in a tractor-trailer in the scorching summer heat.

They were the latest arrests after years of investigation into the deadliest tragedy of migrants smuggled across the border from Mexico.

The dead included eight children.

Interior Minister Francisco Jiménez told The Associated Press the arrests were made possible after 13 raids in three of the country’s departments.

They included Rigoberto Román Mirnado Orozco, the alleged ringleader of the smuggling gang whose extradition has been requested by the United States.

Police also seized vehicles and cash and rescued other migrants during the operations, they said in a statement.

“This is a collaborative effort between the Guatemalan police and Homeland Security , in addition to other national agencies, to dismantle the structures of human trafficking, one of the strategic objectives of the government President Bernardo Arévalo in order to take on the phenomenon of irregular migration,” Jiménez said.

Six people were charged previously.

Homero Zamorano Jr., who authorities say drove the truck, and Christian Martinez were arrested shortly after the migrants were found.

Both are from Texas. Martinez later pleaded guilty to smuggling-related charges. Zamorano pleaded not guilty to smuggling-related charges and is awaiting trial.

Four Mexican nationals were also arrested in 2023.

Authorities have said the men were aware that the trailer’s air-conditioning unit was malfunctioning and would not blow cool air to the migrants trapped inside during the sweltering, three-hour ride from the border city of Laredo to San Antonio.

When the trailer was opened in San Antonio, 48 migrants were already dead.

Another 16 were taken to hospitals, where five more died.

The dead included 27 people from Mexico, 14 from Honduras, seven from Guatemala and two from El Salvador.

Authorities have alleged that the men worked with human smuggling operations in Guatemala, Honduras and Mexico, and shared routes, guides, stash houses, trucks and trailers, some of which were stored at a private parking lot in San Antonio.

Migrants paid the organization up to $15,000 each to be taken across the U.S. border.

The fee would cover up to three attempts to get into the country.

Orozco, the alleged ringleader, was arrested in the Guatemalan department of San Marcos, on the border with Mexico.

The other arrests occurred in the departments of Huehuetenango and Jalapa.

The police identified the gang as “Los Orozcos” because several of those arrested are family members and carry that surname.

“Said organization illegally housed and transferred hundreds of migrants of different nationalities to the United States, collecting millions of quetzales (the national currency) through several years of operation,” said the Guatemalan government.

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The Unraveling of a Crypto Dream

Brock Pierce arrived in Puerto Rico seven years ago, promising to use crypto magic to revitalize the local economy. Now he’s mired in legal disputes and fighting with his business partners.

Brock Pierce, a cryptocurrency entrepreneur, moved to Puerto Rico in 2017. Credit...

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By David Yaffe-Bellany and Laura N. Pérez Sánchez

Photographs by Erika P. Rodríguez

Reporting from San Juan and Vieques.

• Published Aug. 13, 2024 Updated Aug. 14, 2024

On sun-drenched days in 2022, the cryptocurrency entrepreneur Brock Pierce liked to take his friends sailing to the island of Vieques, about 75 miles from his home in Puerto Rico. Mr. Pierce wanted to show off a property that he described as “the most important passion in my life”: a once-glamorous beachside resort that he had recently bought for more than $15 million.

In its heyday, the resort, a W Hotel, boasted a 6,000-square-foot spa, restaurants run by a Michelin-starred chef and sweeping views of the ocean; it was a key source of tourism jobs in Vieques. Then, in 2017, the hotel was damaged by Hurricane Maria, forcing it to close. Mr. Pierce planned to reopen it, using his crypto riches to revitalize both the glistening property and the local economy.

A former child actor, Mr. Pierce knew how to put on a show. On the trips to Vieques, he would anchor his Italian-made yacht at a local harbor, then lead his guests to the gates of the shuttered W, along a stretch of beach where wild horses roamed.

“This was my massive personal bet,” Mr. Pierce said recently. “This was where my heart was.”

But Mr. Pierce’s display of opulence was something of an illusion. Like many other grandiose projects that he has started in Puerto Rico, the hotel’s revival is now mired in unpaid bills and legal quarrels. Last fall, Mr. Pierce lost the W in a dispute with another investor. The hotel is still closed, its windows smashed and its floors covered in mold and horse dung. A $17,000 lounge chair , designed by a prominent Spanish architect, is collecting dust in the empty atrium.

When he moved to Puerto Rico in 2017, Mr. Pierce, an investor in a range of experimental crypto ventures, made headline-grabbing promises to revive the local economy, with the help of a tech-bro brain trust. Best known for his role in the creation of Tether , one of the world’s most popular digital currencies, Mr. Pierce led a wave of industry migrants to Puerto Rico, many of whom started buying land and trumpeting a project they called Puertopia — the transformation of the U.S. territory into a hub for crypto investors and technology start-ups.

“If you’re an American, and you’re in crypto, you have to at least take the trip,” Mr. Pierce said in 2019.

Puerto Rico was a convenient place to cash in on crypto profits. In 2012, the local government passed legislation to turn the archipelago into a tax haven for wealthy transplants. Under a law now known as Act 60 , people who move there can apply for a benefit that allows them to pay nothing in capital gains taxes. The measure was aimed at increasing investment in the Puerto Rican economy, which has struggled to overcome two decades of financial crisis.

But Mr. Pierce’s vision of a crypto-fueled economic turnaround has yet to materialize, according to hundreds of pages of court records and interviews with more than two dozen people familiar with his efforts in Puerto Rico. His business partners have turned on him, and some colleagues say he is running out of cash. There is no clear evidence that the arrival of tech entrepreneurs has helped the local economy. Instead, the Act 60 arrivals have become symbols of a new era of exploitation.

Many locals consider Mr. Pierce the latest offender in a centuries-long history of global elites who have treated Puerto Rico as their personal playground. After the United States invaded in the late 1800s, American businessmen took over hundreds of acres of local land to build sugar plantations, funneling profits back to the United States. Decades later, the U.S. Navy conducted training exercises in Vieques, including bomb tests that harmed the ecosystem and caused lingering health issues.

With the arrival of Mr. Pierce and other wealthy newcomers, Puerto Ricans observed a new rupture, as housing prices surged , especially in coastal towns, displacing local families. On a stretch of wall outside the W, a group of local artists has painted a mural that shows Mr. Pierce, dressed in a crimson tunic, holding a sign shaped like the Bitcoin logo. “Colonialismo,” the caption reads.

Chameleonic Instincts

On a recent Friday evening in Old San Juan, Mr. Pierce, 43, settled down for a cup of coffee at the Monastery, a masonic lodge-turned-hotel that has served as an unofficial home base for crypto migrants in Puerto Rico. He wore a wide-brimmed orange hat and an oversize white T-shirt, emblazoned with the words “bruised never broken.” With a sweeping gesture, he pointed out the window, which overlooks a bustling cobblestone thoroughfare called Calle del Cristo, one of the oldest streets in the city.

“This is some of the first colonial Spanish conquistador infrastructure that was developed,” he explained. “The first formal road with bricks in all of the Western Hemisphere.”

Now the view belongs to Mr. Pierce: He bought the Monastery in 2018 for $4.8 million.

Mr. Pierce arrived in Puerto Rico with an eclectic résumé: The son of a home builder and a church officer in Minnesota, he was a child actor who had a short-lived career in the “Mighty Ducks” movies and starred in a film called “First Kid” with the comedian Sinbad. As an adult, he became an early investor in several prominent crypto projects, ultimately achieving a net worth estimated at $700 million to $1 billion.

After Act 60 passed, arrivals from the United States became a visible presence in restaurants and nightclubs throughout Puerto Rico. Mr. Pierce, a regular at Burning Man, was easily one of the most recognizable. He could often be spotted walking the streets of Old San Juan — a short, energetic man in a T-shirt and leather vest, a chain dangling from his neck.

Mr. Pierce bought two houses in a gated community in Dorado, a wealthy enclave where he settled with his partner, an entrepreneur named Crystal Rose, and his mother, Lynette Calabro. Mr. Pierce hobnobbed with local politicians and hosted extravagant parties, where the guests sometimes took drugs, like cocaine and ketamine, according to two people who attended the events.

For a while, Mr. Pierce managed to charm some of the locals with his openness and curiosity. He had the chameleonic instincts of a skilled actor, adjusting his behavior to suit the audience. “If it was serious people, he’d act seriously,” said Hugo de la Uz, a local maritime expert who helped manage Mr. Pierce’s yacht. “If it was crazy people, he’d act crazy.”

Mr. Pierce expressed interest in nearly every world religion, cultivating a kind of hippie spirituality. Once, on an excursion with some fellow Act 60 migrants, he nestled in the bosom of a Ceiba tree, a species revered by some Puerto Ricans. “I feel connected to him, because he has a spiritual depth,” said Carli Muñoz, a Puerto Rican pianist who has socialized with Mr. Pierce in San Juan.

But the good vibes only went so far. “I’ve made myself sure not to go into business with him,” Mr. Muñoz said.

Since he moved to Puerto Rico, Mr. Pierce has bought at least 14 properties, according to real estate records. Some, like the Monastery, were already functioning businesses. But Mr. Pierce also announced plans to convert much of his portfolio into new projects, including an art gallery and a community center. None of those ventures has come to fruition. A hospital in the city of Humacao that he bought late last year has struggled, and the gallery was recently listed for sale. In 2019, Mr. Pierce took over a three-story building that once housed a children’s museum in Old San Juan; for a while, he told the local media, he used it as “a space to meet and discuss big ideas.” Today, the building is empty, paint peeling from its walls.

“It’s so sad,” said Robert Cimino, a Puerto Rican businessman who owned the building for 19 years before he sold it to Mr. Pierce for $2 million. “I wanted to sell it to someone who could maintain it.”

Over and over, Mr. Pierce has found local Puerto Ricans to help him with development projects — only for many of those collaborators to later say that he exploited them, failing to pay bills or cutting them out of deals. At the same time, he has battled in court with another Act 60 arrival, Joseph Lipsey III, who seized control of the W last year, claiming that Mr. Pierce had defaulted on a loan.

Mr. Pierce has denied that he deceived anyone. But at least three lawsuits against him are pending in the local courts. Over coffee at the Monastery, he acknowledged that his own poor judgment and naïveté had upended his plans in Puerto Rico. “I trust in people,” he said. “That’s one of the things that have gotten me into a little bit of trouble.”

Booed at a Beauty Pageant

Mr. Pierce likes to present himself as a kind of geopolitical mover and shaker. In 2020, he ran for U.S. president as an independent, collecting a little under 50,000 votes. He boasts of “engagements” in El Salvador and Panama, and one evening in June, his assistant announced that Mr. Pierce was joining a Zoom call with the president of Palau, a tiny archipelago in the western Pacific.

“I spend a lot of time with pretty much all of the world’s religious leaders,” Mr. Pierce said at the Monastery. “And a lot of the world’s nation state leaders.”

But Mr. Pierce’s main focus is Puerto Rico, where he has become a leading spokesman for Act 60. After he moved, he told Rolling Stone that he would rebuild the economy “with money that we saved from the I.R.S. in a Robin Hood fashion.” The publicity helped turn Puerto Rico into a popular destination for the crypto set: These days, about 2,600 people receive the Act 60 tax break, according to government figures.

The local backlash against Mr. Pierce started almost as soon as he arrived. “Gringo go home,” someone wrote in red paint on the side of the Children’s Museum. But behind the scenes, Mr. Pierce was expanding his real estate empire. He recruited a prominent local hotel developer, Gonzalo Gracia, to help him find buildings in Puerto Rico that he could rehabilitate and convert into tourist attractions.

Soon Mr. Pierce’s business dealings began to deteriorate into legal disputes with local partners. In 2021, he struck a deal to help produce the Miss World beauty pageant at a concert venue in San Juan. By then, Mr. Pierce was already considered something of a carpetbagger in Puerto Rico: When he was introduced as one of the judges, the crowd booed him. Later, he sued Stephanie del Valle, a Puerto Rican pageant executive and former Miss World, claiming she owed him $1.2 million. Ms. Del Valle countered with her own suit, accusing Mr. Pierce of defamation and seeking $31 million in damages. (The dispute is pending in local court. Mr. Pierce said he was “committed to resolving this matter fairly.”)

Ms. Del Valle was one of the first in a string of Puerto Ricans who have clashed with Mr. Pierce, saying he cheated or manipulated them, according to lawsuits and interviews. Around the same time as the pageant, Mr. Pierce bought an 80 percent stake in the W. The deal was among his largest investments in Puerto Rico, and it paved the way for him to seek more than $30 million in tax credits from the local government.

Mr. Gracia helped set up the acquisition. He represented Mr. Pierce in meetings with local officials in Vieques and found an architect to make plans for the hotel’s reopening, court records show.

But the partnership was short-lived: Once the deal was finalized, Mr. Pierce cut him out of the project, Mr. Gracia claimed in a lawsuit in 2022, and refused to pay him a $790,000 commission.

A similar pattern unfolded on another project in Vieques. In 2021, Mr. Pierce asked a local naval engineer to help him open a hotel-cum-museum on a boat docked on the island’s northern coast. The engineer, who requested anonymity to avoid business repercussions, arranged meetings with local administrators and discussed the project with the mayor, before Mr. Pierce abruptly abandoned the plan. In an interview, he said that Mr. Pierce still owed him $17,000 for the work. (Mr. Pierce said he had no record of that debt.)

By last year, there were signs Mr. Pierce was stretched thin. He had asked Mr. De la Uz to make repairs to the Aurora, 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,” Mr. De la Uz recalled. “Portraying himself as Puerto Rico’s savior.”

In a 2023 lawsuit, Mr. De la Uz claimed that he and Mr. Pierce co-owned the yacht, and that Mr. Pierce missed repair payments, even when one of the boat’s engines “could shut down at any time for no reason.” While guests partied on the deck, Mr. De la Uz said, the yacht was collecting water and slowly sinking into the Caribbean Sea.

Mr. Pierce declined to comment on the allegations, saying, “We are actively working through these issues in court to reach a fair resolution.”

‘I Did Zero Due Diligence’

When Mr. Pierce went out on the Aurora, he sometimes brought along a newcomer to the Act 60 community — Mr. Lipsey, a 62-year-old logistics mogul. For a while, Mr. Pierce knew Mr. Lipsey just by his nickname, Jopepi. Mr. Pierce found him socially awkward but likable enough. A local rabbi had vouched for him. “I was led to believe this was a very charitable man,” Mr. Pierce said.

Mr. Pierce knew only the vague outlines of how Mr. Lipsey had ended up in Puerto Rico. In 2017, Mr. Lipsey had made a fortune from disaster relief efforts after Hurricane Maria, transporting bottled water via a contract with the U.S. government. But two years later, a legal scandal upended his family’s upper-crust life in Aspen, Colo. A wild New Year’s party at Mr. Lipsey’s house led to a police investigation; he and his wife ultimately pleaded guilty to providing alcohol to minors and were sentenced to a year of probation .

The Lipseys sold their house in Aspen and eventually moved to Puerto Rico, settling near Mr. Pierce in Dorado. Soon the families grew close. Mr. Lipsey’s wife became friends with Mr. Pierce’s mother. After Ms. Calabro died of a heart attack in 2022, Mr. Pierce recalled, Mr. Lipsey said that he had made a promise to her: He would always be there for her family.

Mr. Pierce and Mr. Lipsey collaborated on various business ventures, but their most consequential deal involved the W. Last October, Mr. Lipsey agreed to lend Mr. Pierce $10 million — $4 million to buy the remaining 20 percent of the hotel and $6 million for a separate deal to invest in a chain of bankrupt hospitals. The terms were risky for Mr. Pierce: He was supposed to complete the hotel deal within two weeks. As collateral, he had to post his entire stake in the W. Mr. Pierce said that he was uncomfortable with the requirements, but that he agreed anyway. “I did zero due diligence,” he recalled.

The month after the deal was signed, Mr. Lipsey accused Mr. Pierce of violating their agreement and seized control of the hotel. Rather than use the borrowed funds as intended, Mr. Lipsey later claimed in legal papers, Mr. Pierce had spent the money on private jet flights and a 72-hour-long birthday party that spanned San Juan, Miami and Los Angeles. (The event was titled “Brock Pierce’s Odyssey Birthday Celebration: Three Mythical Events,” according to court documents.)

As the dispute escalated, Mr. Pierce summoned Mr. Lipsey for a meeting at the Hacienda Tamarindo, a small hotel in Vieques that Mr. Pierce had bought for $3.2 million. Mr. Lipsey later told the Puerto Rican police that the meeting amounted to a kidnapping. Mr. Pierce had asked for his phone and locked the door, he said, while an armed guard hovered nearby.

In court, Mr. Pierce has denied misusing the borrowed money or kidnapping Mr. Lipsey. But when the W dispute began, he wasn’t in a healthy frame of mind, said one of his advisers, Cassandra Wesselman, who recently moved to Puerto Rico. Ms. Wesselman said it was she who had suggested bringing the armed guard to the Hacienda Tamarindo — to protect Mr. Pierce from a couple who were staying in another room. They belonged to a cult, she explained, and she believed that they had been exercising a malign influence over Mr. Pierce. (In response, Mr. Pierce called that account of his actions “misleading.”)

A month after the disputed meeting, Mr. Pierce sued Mr. Lipsey, seeking to reclaim control of the W and accusing him of “malevolent acts” and “insidious machinations,” including fraud, extortion, deception and theft.

A judge rejected Mr. Pierce’s request for an injunction, which would have restored his ownership of the W as the case proceeds. The parties have stayed in touch, discussing possible settlements. But the friendship between the two men is over.

Mr. Lipsey had not spoken publicly about the dispute until July, when he discussed it for two hours with a reporter from The New York Times over a WhatsApp call. A cigarette dangling from his mouth, Mr. Lipsey gave a virtual tour of his house in Tennessee, where he spends part of the year, switching on his camera to show off an unusual collection of artwork. On one wall hung a canvas with two splotches of red paint. It was the work of his son’s girlfriend, Mr. Lipsey explained; the splotches were imprints of her breasts.

Mr. Lipsey called Mr. Pierce “not a good guy” — a terrible businessman who was constantly running out of money. “All the stuff he moved to Puerto Rico for and he’s talking about, he’s not doing,” Mr. Lipsey declared.

He has said about as much to Mr. Pierce’s face — and worse. During one heated conversation, Mr. Lipsey said, he called Mr. Pierce “a real disappointment to your mother.”

A Blithe Confidence

One morning in June, Mr. Pierce went on a stroll through Old San Juan, winding his way along the narrow sidewalks as he pointed out his favorite spots. Despite the summer heat, he had dressed all in black — part of a simple color scheme he follows every day, so time-consuming wardrobe decisions are one less distraction to worry about. “Mark Zuckerberg and Steve Jobs, these guys wore the same outfit every day,” Mr. Pierce explained.

He stopped outside Carli’s, an upscale jazz bar run by Mr. Muñoz, the Puerto Rican pianist. Mr. Muñoz once dedicated a song to him and Ms. Rose, Mr. Pierce said. He smiled at the thought.

“It’s called ‘Superheroes,’” Mr. Pierce said. (The song’s actual title is “Superpower.”)

Even after all the setbacks, Mr. Pierce expresses a blithe confidence that he can be a force for progress in Puerto Rico. But his self-assurance belies a persistent messiness in his business affairs. Among his friends, Mr. Pierce’s clash with Mr. Lipsey is the subject of vigorous armchair speculation. Robert Anderson, a crypto enthusiast who lives in Puerto Rico and is friendly with both men, said they have behaved “like children,” acting out because they’re bored. “They need some stimulation,” he said. “They want to feel something.”

Friends and colleagues say that Mr. Pierce appears to be running out of cash. In court, Mr. Lipsey’s lawyers have argued that Mr. Pierce lacked “the capital or resources” to develop the W. This summer, a representative for a Puerto Rican basketball team, Mets de Guaynabo, sent Mr. Pierce emails complaining that he had failed to pay more than $25,000 he owed the team as a part of a sponsorship deal, according to documents reviewed by The Times.

Mr. Pierce has also voiced concerns about his safety in Puerto Rico. Privately, he has discussed a plan to build a munitions repository in Vieques — a store of weapons that he said would offer a measure of protection if the locals ever rose up against him, according to two people who heard the comments.

In a 17-page statement to The Times, Mr. Pierce denied that he proposed creating the weapons repository, and said he remains wealthy, disputing the claims that he is financially strapped. He said that the complaint from Mets de Guaynabo was a “misunderstanding,” stemming from confusion over the terms of the sponsorship, and that he has now agreed to pay the fee. (The team representative declined to comment.)

Still, as The Times was finishing its reporting, a publicist for Mr. Pierce mistakenly sent a message to a group chat that included a Times reporter and Ms. Wesselman, Mr. Pierce’s adviser: “We still have not gotten paid,” the text said. “I assume your [sic] not paying us or you would have done it already.” Ms. Wesselman laughed off the message, saying that the publicist was “totally messing with us.” After he learned that a reporter had seen the text thread, the publicist said Mr. Pierce “always pays his bills.”

In his statement, Mr. Pierce defended his work in Puerto Rico. He said he had made charitable contributions, including a six-figure donation to support Covid relief efforts in the region. “Transformative projects take time,” Mr. Pierce said. “While some initiatives have faced challenges, others have seen significant success.”

Among his achievements, Mr. Pierce cited a hospital in the city of Humacao that he bought in late 2023 — the investment he had pitched to Mr. Lipsey. He said he had worked with a Puerto Rican radiologist, Josué Vázquez Delgado, to drag the hospital out of bankruptcy, retaining more than 90 percent of the staff.

But in an interview, a doctor at the hospital, who asked to remain anonymous to avoid discipline, said Mr. Pierce owed him tens of thousands of dollars in unpaid wages. The hospital has been late paying suppliers, the doctor said, and some of the surgeons are short on equipment. (Mr. Pierce said his team has addressed those problems and “dramatically improved the hospital’s operations.”)

On his walk in San Juan last month, Mr. Pierce sought to offer a visual demonstration of his success in Puerto Rico. He led two Times reporters to a building he had bought in 2019, a sparsely furnished space dotted with TV screens. The property, he declared, housed the world’s first art gallery dedicated to nonfungible tokens, the digital artwork known as NFTs. “You normally wouldn’t think that Puerto Rico would be the first place in the world to be pioneering in tech,” he said. The images on display included a fluorescent dinosaur, perched amid a forest of giant cactuses, that Mr. Pierce said his 5-year-old daughter had designed using an artificial intelligence tool.

But what he failed to mention was that a luxury real estate firm had put up a notice listing the building for sale and had held an open house . Confronted with that fact, Mr. Pierce acknowledged that he had recently tried to sell the gallery.

It was never fully opened, he explained, and has struggled to make money.

Kitty Bennett contributed research.

David Yaffe-Bellany writes about the crypto industry from San Francisco. He can be reached at [email protected]. More about David Yaffe-Bellany

Inside the World of Cryptocurrencies

A Crypto Dream Unravels:  Brock Pierce arrived in Puerto Rico in 2017, promising to use crypto magic to revitalize the economy. But his vision has yet to materialize .

The Return of Memecoins:  One of the wildest, most scam-ridden corners  of the cryptocurrency industry has roared back.

A Journey to Legitimacy:  Blake Benthall’s decade-long path from an online drug lord to a crypto entrepreneur followed some surprising twists .

Who Is Satoshi Nakamoto?:  For years, an Australian crypto enthusiast claimed to be the mysterious creator of Bitcoin. Then the courts got involved .

Crypto Guide:  Our tech columnist believes that crypto is terribly explained. His mega-F.A.Q. is an attempt to fix that .

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Trump Falsely Suggests Fentanyl Is Not An Opioid In Interview

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Donald Trump spoke about drug use in an interview with podcast host Theo Von posted late Tuesday, in which the ex-president drew attention for his interest in Von’s own past cocaine use—but he also seemed to repeatedly misunderstand that fentanyl, a frequent topic of Trump’s on the campaign trail, is itself an opioid, and not a separate type of drug.

Former President Donald Trump speaks during a campaign rally on August 17 in Wilkes Barre, ... [+] Pennsylvania.

Von interviewed Trump for his podcast “This Past Weekend,” in which the podcaster brought up his past struggles with drug and alcohol addiction and asked Trump what he would do as president to curtail the drug crisis and give pharmaceutical companies less influence.

In Trump’s response, the ex-president noted, “The big problem we have is, fentanyl is the biggest. Opioid is bad. Opioid is bad too”—though fentanyl is itself a synthetic opioid.

Trump also appeared confused about fentanyl being an opioid when he asked Von whether he believed alcohol or opioids was a bigger “problem in our country”—Von responded that opioids are “for sure” the larger issue, Trump followed up, asking, “You compare that to fentanyl?”

Trump questioned Von about his drug use, asking what using cocaine is like and if using it gives a “good feeling”—calling it a “down and dirty” drug—and asking Von why people use the drug after the podcaster said it gives him a “miserable” feeling.

The Trump campaign noted to Forbes that the National Institutes of Health categorizes fentanyl separately from traditional opioid products, and campaign spokesperson Karoline Leavitt said in a statement Trump “has proposed bold, effective solutions to the opioid and addiction crisis that will save American lives and heal our families.”

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here .

Crucial Quote

“It's obviously a problem and it's a big problem,” Trump told Von about the drug epidemic. “And we were doing things about it, but then we had to get down to other business. We had to solve some, we had a lot of problems with this country.”

Chief Critic

“In her time in office, Kamala Harris has done nothing to halt the expanding opioid crisis in America and it is one of the greatest failures of the Harris-Biden Administration,” Leavitt said in a statement to Forbes. “A Trump Administration will be laser focused on securing our nation’s borders, halting the importation of fentanyl and will hold the over-prescribers and drug cartels accountable.”

Why Is Trump's Campaign Focused On Fentanyl?

Trump’s discussion about fentanyl comes as the ex-president has repeatedly made the drug crisis an issue on the campaign trail, claiming his proposed crackdown on undocumented immigration is in part a way to cut down on fentanyl coming from over the border. That has included a number of false claims about fentanyl, claiming more than 300,000 Americans die each year from fentanyl overdoses—the actual number is under 100,000—and claiming undocumented migrants are responsible for the bulk of the U.S.’ fentanyl supply. While the majority of fentanyl in the U.S. has been traced back to Mexican cartels, government data shows 86% of people sentenced for trafficking fentanyl are U.S. citizens. The Republican National Convention also featured speeches by Americans whose lives have been affected by the fentanyl crisis, and Trump took steps against the drug crisis while in office, including declaring the opioid crisis a public health emergency and creating a commission to study the issue. White House materials from the time note that fentanyl is a type of opioid.

107,543. That’s how many Americans died from drug overdoses overall in 2023, the Centers for Disease Control and Prevention estimated in May, with 74,702 of those deaths attributed to synthetic opioids, including fentanyl. Fentanyl deaths have decreased since 2022, however, when 76,226 Americans died from overdoses of synthetic opioids.

What Is Fentanyl?

Fentanyl is a synthetic opioid, which the Drug Enforcement Administration notes is approximately 100 times more potent than morphine and 50 more potent than heroin. The drug has government approval for pain relief and as an anesthetic, but the opioid crisis has been fueled by Americans getting addicted to the drug beyond its approved uses. Fentanyl is more potent than prescription opioids that have also fueled the opioid epidemic and can be produced more cheaply, and the rise in overdose deaths has been fueled by drug dealers creating counterfeit pills containing lethal doses of fentanyl or mixing the drug with other substances like heroin or methamphetamines. The DEA reported seizing more than 80 million fake pills laced with fentanyl in 2023, and notes 70% of the pills it has seized contain a lethal dose of the drug.

Further Reading

Donald Trump accused of falsely vilifying migrants for surge in US fentanyl deaths (The Guardian)

In grim milestone, U.S. overdose deaths top 100,000 for third straight year (Washington Post)

Why Is Fentanyl Driving Overdose Deaths? (Yale Medicine)

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