Bloomberg has an update on Prospera, the "self-governing" enclave on the Honduran island of Roatan that was founded as a free-market paradise with its own legal system and near-zero taxes. It's a one-square-mile gated compound that initially won the praise of Silicon Valley billionaires and crypto entrepreneurs seeking refuge from government oversight. Around 50 companies set up operations there, hosting conferences with themes like "Make Death Optional" and attracting biohackers and venture capitalists.
But what began as an 120 million investment is now an 11 billion dispute between the founder and Honduras' current president, who has denounced Prospera as the creation of a "narco-regime." Honduras' supreme court ruled its legal framework unconstitutional. The previous Honduran president who championed the project now sits in a U.S. prison on drug trafficking charges.
Nobel laureate Paul Romer, who once supported the concept, now criticizes the project. "They're living in this libertarian fantasy that this will be a place they can be free of the government. That's not gonna turn out well," he told Bloomberg.
Previously:
• Government of Honduras sued by billionaires over tax haven dispute
