Thread by @omlivingstones

I co-mediated a dispute between a failed agritech and over 100 investors over an investment sum totalling almost 200 million. As the CEO, in his early twenties kept presenting repayment propositions,the investors kept rejecting it. They wanted their money immediately.

#Mediation

I went on leave and met a young man that was 20 years old. He was born in 2002!😳 But quite vibrant and smart for his age. He was a crypto trader. I'd done another crypto mediation that was successful, several millions but we only mediated between him & those he owed almost 500k

I shared my cynicism of crypto investment and told him about my mediation, since we were getting to know each other and shop talking. He told me something flippantly. They have an indemnity clause for 3rd party investors (not day traders) who invest with them. The clause says

they lose their profit in the event crypto crashes. And that the trader would pay their capital back over a period of 3 years. Smart!

I like conversations that make me smarter.

So when I resumed and we reconvened for the agritech #Mediation, I asked the CEO if there was such a

clause in his company/investor agreement. No, there wasn't. Goof goof! This could have bought him more repayment time and calmed the investors' nerves. One could debate the wisdom of a 70:30 profit sharing ratio, large scale agricultural venture without guaranteed off takers,

covid19, fund mismanagement, deficient communication, poor demographic mapping etc but this clause, this one clause could have made a difference.

We learn everyday. #Mediation