Texas Regulators Accuse German 'GS' Network of Digital Asset Fraud
Summary:
The Texas State Securities Board is accusing a network of German-based companies named "GS", led by Josip Dortmund Heit, of fraudulent activities related to digital assets and a proprietary metaverse staking pool. These companies allegedly managed three rounds of unregistered metaverse property sales in 2021 and failed to reach their $175 million target, leading to a significant drop in token value. Consequently, the Texas State Securities Board has filed an emergency enforcement action against these companies.
The "GS" network of German-based companies, led by Josip Dortmund Heit, is facing fraud allegations involving digital assets and investment in a proprietary metaverse staking pool, as announced by the Texas State Securities Board. These firms, GS Partners, GS Smart Finance and GS Wealth, reportedly conducted three sales of metaverse properties since September 2021. Investors were led to believe they could buy XLT Vouchers or BNB Chain tokens, symbolizing an inch of space in G999 Tower metaverse, for 9.63 USDT each. Nevertheless, the token's value dropped drastically to less than 0.0000049 USDT per token on the PancakeSwap decentralized exchange following the firms' inability to reach their $175 million fundraising goal. The firms are also alleged to be unregistered with the Securities Commissioner. In addition, other investment instruments like GSB's Lydian World metaverse tokens, gold tokens, G999 coin and Elemental Certificates were unregistered security offerings. Hence, an urgent enforcement action has been filed by the Texas State Securities Board directing the GSB group to cease and desist from such undertakings in Texas. On August 15, Ontario Securities Commission warned that GS Partners was unregistered and unauthorized for operation in Ontario, Canada. Earlier warnings were also issued by securities regulators in Canadian provinces namely, Saskatchewan, British Columbia, Alberta and Quebec.
Published At
11/16/2023 8:30:00 PM
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