Complaints

This profile includes complaints for Masterworks.io, LLC's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Masterworks.io, LLC

  225 Liberty St Fl 25 New York, NY 10281-1058

  
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  Masterworks.io, LLC

  1 World Trade Center, 57th Floor New York, NY 10007

  

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:06/20/2024

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Since the beginning of June/2024after numerous documented attempts, Masterworks Fine Arts have ignored my request to sell my securities. I received an email each time stating: "We have received your message and our Technical Support Agents will be in touch shortly.", yet no one has responded. Furthermore, they claim that all I have to do is "Just head to the "Trading" tab on **************** and click the "Transfer" button in the box of your wallet account you would like to deposit into or withdraw from." There is no "transfer button", thus making it impossible for me to sell my securities. Most recent email: Today is 6/14/24. Sometime in early June I tried accessing my account information with no success. I emailed support and on 6/5 was given a link: Your Portfolio. When I do so, your web page states: oops, something went wrong. I immediately emailed back with this information, along with a request to close my account. On 6/7 I received a response from you: "We have received your message and our Technical Support Agents will be in touch shortly." That was over a week ago and no support agent has contacted me. The combination of a poor web site and bad customer service has confirmed the reason I want to close my account. If I don't hear from you soon then I will be filing a complaint with whatever watchdog agency that governs your actions.

  Business Response

  Date: 06/20/2024

  ****** - 

  Thank you for expressing your concerns.  

  We certainly appreciate the that you're feeling some frustration in attempting to meet your expressed goal of having Masterworks sell your shares.  

  As has been related to you by our team, liquidation of the positions you currently hold in advance of a full-scale liquidation of the underlying assets themselves is not something Masterworks can do on your behalf.  In order to close your positions in advance of that eventuality, you will have means to do so on the Masterworks Secondary Market Trading Platform.  

  The process and timelines by which you can use the secondary market platform were detailed in an email sent in response to your email from Friday 6/7 at 6:53 EST on Monday 6/10 at 9:56 AM.  You can see the copy from that email below:  

  Email
  9:56 AM
  
  Hey ******,
  Thanks for reaching out! I just took a look at your account and noticed that your offerings are now closed and the shares have been issued to you, so unfortunately we won't be able to liquidate your positions from our end.
  Your shares will automatically be sold when Masterworks sells the painting. However, you are also eligible to use our Trading Wallet to sell your shares on the Secondary Market. You can set up that wallet here: Trading Wallet Setup. For more information regarding trading on the secondary market, take a look at our Trading Help Documentation.
  Please note, there is a 90 settling period that occurs after Masterworks has closed an offering, during this time your shares will not be eligible to trade. For newly approved Trading Wallets, any eligible shares will be available to trade on the following Friday afternoon. This will affect all three of your investments as they are all within the process of closing this month. You can expect to trade these shares around October 2024.
  At that point you can use the following steps to sell your shares:
  1. Click here to head to the "Trading" dashboard
  2. Click the 'Shares I Own' checkbox
  3. Click the offering you wish to trade
  4. A pop-up window will show; navigate to the top right-hand corner
  and click "Sell"
  5. Enter your sell order
  It's important to note that the secondary market does require both a third-party buyer and a seller. As such, the value of the shares you are looking to sell are tied directly to what someone is willing to pay for them. This does create a difference in the appraisal value and the secondary market value. When you originally invested with us, you paid at the appraisal value of $20 a share. The value of your shares in your Masterworks portfolio will correlate to our appraisal processes, whereas, the value in your trading account will fluctuate between that buyer and seller relationship.
  Based on our research and market data, an average sale horizon for similar works to those owned by Masterworks is between 3-10 years. However, the last several pieces sold by Masterworks were held for under 3 years. Of course, past performance is not indicative of future results. Keep in mind, that generally when we sell the art, it will be for a much higher price rather than selling early on the secondary market.
  With all that being said, it is completely up to you to choose when to sell, but you will be bound to that secondary market value.
  Please feel free to reach out if you need anything else!
  ****

  Based on your subsequent communication, it would seem to indicate that you missed this email or perhaps it was routed to your spam folder.  

  In either case, the information provided details the timelines and process by which you'll be able to sell your shares to close your positions.  

  We apologize for the confusion and frustration this might have caused, but you will have ample means to close your positions when the shares you own become trade eligible.  

  If you have any further questions, we recommend scheduling a call with our support team by going to the link "***********************" and selecting a time that works for you.  

  Thank you.