The North American Securities Administrators Association (NASAA) says it has reached a settlement with GSB Gold Standard Corporation AG (GS Partners or GSB Group), a Fintech and banking firm that allegedly solicited more than 800,000 investors around the world to participate in investments including digital assets.
The NSAA states that the settlement also names Josip Heit, the principal and Chairman of the Board of GS Partners.
In 2023, the State of California issued a “Desist and Refrain” order directed at the aforementioned entities.
NASAA is the group that represents state and provincial regulators in North America.
NASAA claims that over $1 billion in transactions were completed and that many of the products offered to investors were converted and often tied to other tangible and intangible investments.
GS Partners apparently pitched the offerings in seminars and online, including social media. The proposition was said to be described as the “best opportunity on the planet” and a “game-changer.”
The settlement results from a working group of state securities regulators from Alabama, Arizona, Arkansas, California, Georgia, Kentucky, Mississippi, New Hampshire, Texas, Utah, Washington, and Wisconsin.
NASAA said the offering included the metaverse and involved the “G999 token,” a digital asset said to be deployed on a proprietary blockchain purportedly tied to physical gold or “XLT Vouchers.”
In November 2023, state regulators and the British Columbia Securities Commission began filing enforcement actions against the respondents to stop the allegedly illegal offers and sales.
The settlement terms are said to permit all NASAA securities regulators to settle on similar terms. Investors will have 90 days to file a claim.
Claire McHenry, NASAA President and Deputy Director of the Nebraska Department of Banking and Finance, said she wants to keep bad actors away from their securities markets.
The NASAA agreement is expected to return the total value of the investments.
A settlement term sheet has been posted by the State of Texas.
BehindMLM, once the target of a legal action pursued by GS Partners, reports there are other regulatory investigations regarding the entities which are ongoing.
