News - Summary judgment against Josip Heit's dubious crypto project GS Partners
The Texas Securities and Exchange Commission has a court order announced against GS Partners, owned by German entrepreneur Josip Heit, to "put an end to to an ongoing international investment plan that causes immediate and irreparable harm to the public." Canadian securities regulators were also involved in the investigation.
"The complaint accuses GSB Gold Standard Bank LTD, GS Partners and other members of the GSB Group of offering numerous high-tech products, including fraudulent certificates linked to digital assets, investments in a strike pool in a proprietary metaverse, and a token that purportedly could be used for rewards that could be converted into real physical gold," it reads. In addition, "the parties allegedly failed to raise $175 million by selling cryptocurrencies that represented ownership in a skyscraper, resulting in significant losses to investors who purchased and held the underlying assets."
According to this information, GS Partners' products were allegedly promoted "through a multi-level marketing scheme that paid generous commissions from as many as seven different sources." In addition, "GS Partners allegedly used numerous social media accounts and video conferences to promote GSB Group's investments and activities." PR support was also obtained from athletes "such as boxer Floyd Mayweather and soccer player Roberto Carlos."
According to Enforcement Director Joe Rotunda, investors were also misled by changes to the terms of the contract: "It describes a situation where investors went to bed thinking their assets were safe and profits were liquid, only to wake up and hear about losses, restrictions and increased fees. This is not just a red flag, it's a big, bright, outrageous red flag."
According to the authority, GS Partners is part of the business conglomerate GSB Group, "a family of companies reportedly affiliated with GSB Gold Standard Corporation AG, a company operating in Germany." Reference is also made to the G999 project, also managed by Josip Heit, "a digital asset and blockchain linked to smartphone applications on the Apple App Store and Google Play Store."
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