Texas, Alabama securities regulators allege fraud against GS Partners in multiple crypto schemes

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    Securities regulators in Texas and Alabama have accused a group of companies involved in the Metaverse real estate project of fraudulently raising millions of dollars from investors.

    of Texas State Securities Commission A state of emergency was declared last week. stop command to GS Partners, Swiss Valorem Bank, and several related entities controlled by Josip Heit.

    The Alabama Securities Commission also filed its own cease-and-desist order against Hite and GS Partners for illegally selling securities in the form of “meta certificates.”

    Regulators in both states allege that the companies operated an illegal securities scheme involving digital assets tied to virtual real estate in a Metaverse project called Lydian World.

    According to the order, GS Partners sold blockchain-based tokens representing fractional ownership of a hypothetical 36-story skyscraper called G999 Tower located in the Metaverse. The company claimed to have acquired the right to resell units in the skyscraper and promised investors profits from lease income.

    According to the Texas order, GS Partners raised an unspecified amount from token sales in 2021 and 2022, but failed to raise its $175 million goal.

    of alabama orders The company is accused of guaranteeing unrealistic returns of up to 5% per week to investors in the state who purchase Meta certificates.

    According to Alabama regulators, GS Partners sells and sells meta certificates in the state through WealthBuilders Worldwide. Customers can purchase meta certificates by paying a fixed monthly fee and earn additional profits by acquiring new customers.

    A representative from GS Partners told an Alabama investor that MetaCertificates are “like a bank certificate of deposit, but better,” with a $5,000 investment earning more than $60,000 in 18 months. The order states that he claimed to be able to obtain the same.

    The regulator says many investors have likely lost most of their investments in Metaverse real estate schemes and MetaCertificates.

    Additionally, the states allege that GS Partners and Swiss Valorem Bank sold fraudulent certificates related to virtual currencies. According to the Texas order, the companies used misleading sales materials touting high profits in U.S. dollars, when in fact the profits were paid in unclear internal tokens.

    These companies are run by German businessman Josip Heidt. It has long been suspected Running an illegal cryptocurrency scheme. These companies are not registered to sell securities in Texas or Alabama.

    Regulators ordered both companies to immediately cease all offerings and sales of illegal securities. The emergency measures will last up to 31 days in Texas and 60 days in Alabama, after which they can be challenged in a public hearing or made permanent.


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