GS Partners Accused by States for Misleading Crypto Investors

• GS Partners Accused of Fraud by Multiple US States
• Using Celebrities to Attract Attention
• The Accusations Against GS Partners
• Claims of Fraudulent Investment Schemes
• Marketing Strategies of the Accused
• Specific Business Activities Named
• Executives Named in the Actions
• Reactions from the Accused

GS Partners Accused of Fraud by Multiple US States

Several United States authorities are alleging that GS Partners, a conglomerate of companies, was involved in numerous fraudulent cryptocurrency activities. These activities range from offering tokenized shares in a Dubai skyscraper to stakes in metaverse property. The larger body of operations under the GS Partners label includes entities such as GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd., and GSB Gold Standard Corporation AG. These organizations are allegedly under the control of Josip Dortmund Heit.

Using Celebrities to Attract Attention

Among the tactics employed by these companies was the engagement of sports stars like retired boxer Floyd Mayweather Jr. and footballer Roberto Carlos. These celebrities were hired to draw attention to a variety of investment opportunities, according to regulatory bodies.

The Accusations Against GS Partners

It is alleged that the linked businesses infringed upon state laws by issuing and selling unqualified securities. Furthermore, they are accused of making significant misrepresentations and omissions to investors regarding cryptocurrency asset investments. These allegations were made in a lawsuit lodged on Thursday by the California Department of Financial Protection and Innovation. Other states such as Texas and Alabama, as well as other jurisdictions, are pursuing similar actions against the organization.

Claims of Fraudulent Investment Schemes

The business has been accused of executing various fraudulent investment strategies, resulting in immediate and considerable harm to the public. This accusation was made in a Thursday action by the Texas State Securities Board.

Marketing Strategies of the Accused

The investment schemes allegedly carried out by GS Partners were often promoted as unique chances to generate substantial profits and establish generational wealth via blockchain technology, a metaverse, liquidity and staking pools, a tokenized skyscraper, and digital assets supposedly convertible into physical gold. This is according to the emergency cease-and-desist order issued by the Texas agency.

Specific Business Activities Named

One segment of the business offered digital assets affiliated with Lydian World in the metaverse, while another offered investments in a 36-story building called G999 Tower in Dubai. The activities are described in promotional information referenced in the Texas case. Additionally, the business was operating a multi-level marketing platform offering "MetaCertificates".

Executives Named in the Actions

The actions directly name Josip Heit and other GS Partners executives, including Bruce Innes Wylde Hughes and Dirc Zahlmann.

Reactions from the Accused

Attempts to reach Josip Heit and the company through their business websites and social media have so far not received any responses.

Edited by Jonathan Stoker