Worthy Peer Capital Bonds Are Now Worthless

Over three years later, and my Worth Bonds are worthless.

I reported back in August 2022 that Worthy Bonds were having liquidity problems. Last month I received the following email:

Hi Joseph,

As of February 2nd, 2026, after exhausting all available debt-recovery and asset sale efforts, Worthy Peer Capital has determined that no further funds remain for distribution to bondholders.

As a result, any securities held in this offering should at this time be considered worthless. Please contact your tax professional regarding the appropriate tax treatment for any loss related to the foregoing.

When we first paused redemption in 2022, we shared that Worthy Lending–our subsidiary that invested the bond proceeds–was experiencing illiquidity driven by borrower challenges and economic factors due to the COVID pandemic. Since then, we’ve taken every reasonable measure to recover assets, pursue collections, and support repayment. While we managed to recover millions of dollars for investors, recoveries were not sufficient to redeem all remaining bonds. We’re deeply sorry for this outcome and truly appreciate your patience throughout this process. Thank you,

The Worthy Team

According to my February account statement, I lost a total of $59.31:

I’ll have to do more research - and, if you lost money, too, I suggest you do, too - but I’ll probably write the money off as a loss on my Schedule D and Form 8949 next tax season.

I still have $231.88 in 20 Worthy Property Bonds. Same company, different offering. They’re “high yield” bonds just like the Worthy Peer Capital Bonds. “High yield” just being a more palatable name than “junk bonds.”

I also still have a Worthy Referral Link but I’m not sure it still works. The link does take you to Worthy’s site.

For further reading, read the Worthy Peer Capital I statement on Worthy’s own site.