U.S. States Accuse GS Partners of Crypto Fraud

By: Eva Baxter

Securities regulators in Texas, Alabama, and other U.S. states have accused a group of companies, including GS Partners and Swiss Valorem Bank, of multiple fraudulent cryptocurrency schemes involving metaverse real estate. The regulators have alleged that these companies have deceitfully raised millions from investors. Both Texas and Alabama have issued cease and desist orders against these entities which are controlled by business tycoon, Josip Heit.

The companies are allegedly involved in illegal securities schemes tied to digital assets related to a metaverse project known as Lydian World. They sold blockchain-based tokens representing fractional ownership in a virtual skyscraper called the G999 Tower in the metaverse. Although the target to raise $175 million by selling tokens during 2021 and 2022 was not achieved, money was indeed raised through these sales.

Both states accuse the companies of also selling fraudulent certificates tied to cryptocurrencies. The businesses, controlled by Josip Heit, are not registered to deal or trade securities in Texas or Alabama. With the issuance of the cease and desist orders, the companies are required to halt all illegal securities offerings and sales immediately. If these emergency actions are not challenged within 31 days in Texas and 60 days in Alabama, they will become permanent.

As these allegations surface, all potential investors are urged to remain cautious and ensure their investments are safe and legitimate.