Hina Nainani
4 min read
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Landa, a proptech startup that once promised to democratize real estate investing by allowing users to invest with as little as $5, is facing significant operational and legal challenges. The company’s app and investment portal have been non-functional for weeks, leaving users unable to access their funds or receive dividends, according to TechCrunch.
As of May 23, Landa's app and website remain non-functional, displaying only error messages. According to TechCrunch, the outage began around April 15. Users report being locked out of their portfolios, unable to withdraw funds, and missing dividend payments going back as far as the third quarter of 2024. More than 130 complaints have been filed with the Better Business Bureau, many citing similar concerns: unresponsive customer support, frozen withdrawals, and a lack of communication from company leadership.
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One investor cited by TechCrunch claimed to have $18,000 stuck on the platform. BBB records include multiple complaints describing ignored support tickets and growing anxiety over the safety of user funds. Some users told TechCrunch they were encouraged to continue investing even as the platform's backend began showing signs of instability in late 2023.
In November, Viola Credit and L Finance filed a lawsuit in New York State Supreme Court against Landa, accusing it of defaulting on over $35 million in loans and mismanaging properties. The court appointed an independent manager to oversee 119 properties, citing concerns about their condition and management. Despite a court injunction, Landa’s executives allegedly continued to collect rents and withdrew $724,000 from the properties’ accounts. Judge Jennifer Schecter threatened to hold Landa in contempt of court if they didn’t comply with the injunction, Bisnow reported.
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“We are aware of the issues currently affecting our platform and product, and want to assure all investors that we are actively working to restore full functionality as soon as possible,” Landa CEO Yishai Cohen told TechCrunch in a statement in April. Cohen has denied that the company has shut down, attributing the platform's ongoing issues to server problems.
