U.S. States Take Action Against GS Partners Over Alleged Crypto Investment Scams

20. November 2023 BACK TO NEWS

In a coordinated effort, multiple U.S. states, including California, Texas, and Alabama, have issued cease-and-desist orders against GS Partners, an organization accused of orchestrating fraudulent crypto investment schemes. The entities under scrutiny, including GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd., and GSB Gold Standard Corporation AG, allegedly violated state laws by offering unqualified securities and providing misleading information to investors regarding crypto asset investments.

Regulators contend that GS Partners, controlled by Josip Dortmund Heit, has been engaging in various fraudulent investment schemes that pose an immediate threat to the public. The organization reportedly enlisted the endorsement of sports celebrities like Floyd Mayweather Jr. and Roberto Carlos to attract attention to its investment offerings.

According to the California Department of Financial Protection and Innovation, GS Partners employed deceptive marketing strategies, promoting investments in a tokenized Dubai skyscraper called the "G999 Tower," digital assets associated with the Lydian World metaverse, and a multi-level marketing platform offering "MetaCertificates."

The emergency cease-and-desist order issued by the Texas State Securities Board describes the investment schemes as marketed opportunities to generate profits and secure generational wealth through blockchain technology, metaverse investments, liquidity and staking pools, and assets purportedly tokenized and convertible to physical gold.

This regulatory action highlights the ongoing scrutiny faced by crypto-related investments and emphasizes the need for robust investor protection measures to curb fraudulent activities within the crypto industry.