Diddy’s legal battles prompt asset sales as he remains in custody

Omokolade Ajayi -
Key Points
  • Sean "Diddy" Combs is selling high-value properties at below-market prices amid mounting legal battles.
  • A $100-million civil judgment against Combs, linked to a decades-old sexual assault claim, has intensified his financial and legal troubles.
  • Combs has divested from Revolt, selling his stake in the Black-owned media platform, as mortgage debts and legal costs escalate.

Sean 'Diddy' Combs is taking drastic steps to sell off his assets as legal troubles and federal investigations pile up.

The decision to sell off high-value properties comes amid a flurry of lawsuits and criminal charges that threaten his fortune and reputation.

Combs was arrested last week and remains in custody after twice being denied bail. He has been charged with sex trafficking, racketeering, and transporting individuals for prostitution.

The charges — part of an ongoing federal investigation — have placed the Bad Boy Entertainment founder in a precarious financial position, forcing him to sell properties at prices below their market value in an effort to cover rising legal fees.

$100-million civil judgment intensifies financial strain

The legal pressures intensified with a recent ruling by a Michigan judge, who handed down a $100-million civil default judgment against Combs.

The ruling stems from a decades-old accusation that he drugged and sexually assaulted a man 27 years ago in Detroit.

The settlement has compounded Combs’ legal challenges, which now include multiple civil suits alleging sexual assault, rape, and physical abuse.

At least six individuals have filed lawsuits against Combs since late 2023, accusing him of various forms of sexual misconduct, including sex trafficking and drugging victims.

The allegations span over several years, and the financial burden of defending these lawsuits has escalated.

Combs, who had a $1-billion net worth in 2023, is reportedly struggling under nearly $100 million in mortgage debt tied to properties in Los Angeles and Miami.

In an effort to alleviate some of this burden, he put his Los Angeles mansion on the market for $70 million after a March raid by Homeland Security Investigations (HSI) agents.

Adding to the financial strain, Combs has also sold his remaining stake in Revolt, the Black-owned media platform he co-founded in 2013, to an undisclosed buyer.

Revolt, known for its music-focused television network, was a significant part of Combs’ business portfolio.