Last November, the former child star, Brock Pierce, used more than three million in Bitcoin as collateral to purchase a $1.2 million renovated chapel in Amsterdam. According to Fox Business, the actor turned entrepreneur, holds more than 95 percent of his net worth in cryptocurrencies and is the first person in the world to use his cryptocurrency to buy a home without actually giving away his Bitcoin.
Swiss-based Nexo, a leading fintech group who offer an instant cryptocurrency credit line, said that Pierce backed the loan for the house with Bitcoin. Apparently, there are a lot of us who are sure the price of Bitcoin really will moon, and don’t want to sell what we already own. But sometimes (for now anyway) we do need fiat.
Using Bitcoin and other cryptocurrencies as collateral, Nexo use a third party custodian to store it and give them fiat. Clients can get instant loans of up to $2 million in 45 different fiat currencies within 24 hours.
“Neither the client nor us have access to the coins,” said Antoni Trenchev, co-founder and managing partner at Nexo. “For a loan of $10,000 you will need to deposit $20,000 in Bitcoin. So, we lend you like 50 cents on the dollar”.
“This was our first-ever crypto-backed mortgage,” he added.
Pierce told Fox Business that the platform which launched last year, has the capability of being the bridge between the “old world of traditional finance and the brand new frontier that blockchain now enables”.
“Being able to borrow against one’s crypto assets gives one options, when wanting to purchase a property, and aligns with my philosophy that real estate and tokenization will be a quadrillion dollar market,” said Brock “I was able to hold on to my crypto and settle the transaction in fiat”.
Controversy Continues To Haunt Brock
The former child actor who starred with Emilio Estevez in the hit 1992 film The Mighty Ducks has since become a crypto entrepreneur and venture capitalist and is now the chairman of the non-profit Bitcoin Foundation.
In 2014, ten members of the Foundation resigned over the election of Pierce as a new director. They cited Pierce’s “troubled past” that included allegations from three employees of Pierce’s first company, Digital Entertainment Network (DEN), that he provided drugs and pressured them for sex when they were minors.
In 2000, the employees filed lawsuits against Pierce, and court records show that Pierce paid more than $21,000 to settle the claim by Michael Egan. It was clarified that it was a payment to Egan’s lawyer for expenses. The other two lawsuits were dropped.
Pierce issued a denial. “The allegations against me are not true, and I have never had intimate or sexual contact with any of the people who made those allegations”.
Michael Egan filed more lawsuits in 2015 against others, making similar accusations, but withdrew them after admitting that they were false. Egan was sentenced to two years in prison in connection with a fraudulent investment scheme. In light of this, the lawsuit against Pierce may have been an attempt to extort money.