Tennessee and GS Partners resolve misleading crypto investment claims

Tennessee has reached a multi-million dollar settlement with GS Partners, addressing allegations of deceptive investment schemes involving digital assets and the metaverse. 

The settlement follows accusations that GS Partners, led by chairman Josip Heit, misled investors with tokens and vouchers linked to physical gold, skyscrapers, and virtual staking pools in the metaverse known as "Lydian World." 

According to the Tennessee Department of Commerce Insurance (TDCI), the settlement involves the GSB Gold Standard Corporation AG and GSB Gold Standard Bank LTD, also known as “GS Partners.” 

The company allegedly promoted investments like the G999 token, described as a digital asset tied to physical gold, and “XLT Vouchers,” claimed to represent ownership in a skyscraper. 

The TDCI statement noted that these offerings were tied to digital assets and the metaverse, including the G999 token, XLT Vouchers, and investments in a staking pool within "Lydian World." 

As part of the settlement, GS Partners has agreed to refund the full value of all funds or cryptocurrencies invested. 

The settlement specifies that the respondents must return the total amount of all monies or cryptocurrencies invested with GSB Group, GS Partners, and its affiliates, regardless of the product or service purchased. 

Tennessee investors who deposited funds have 90 days to file claims once the process opens in November. 

The TDCI is encouraging affected consumers to contact the Division of Securities to prepare their claims. 

Other states involved in the settlement include Alabama, Georgia, Texas, and Washington. 

GS Partners and its affiliates claim to have more than 800,000 investors worldwide, with over $1 billion in transactions.