Several U.S. states have ordered GS Partners to cease operations after the project was accused of defrauding investors in multiple cryptocurrency schemes.

Several U.S. states have ordered GS Partners to cease operations and accused GS Partners of defrauding investors in multiple cryptocurrency schemes. GS Partners is an organization that includes GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd. and GSB Gold Standard Corporation AG, all of which are controlled by Josip Dortmund Heit. The affiliates are accused of violating state law because they offered and sold nonqualified securities and made material misrepresentations and omissions to investors related to investments in crypto assets, according to a case filed Thursday by the California Department of Financial Protection and Innovation. Texas, Alabama and other jurisdictions are taking similar action. The Texas Securities Regulatory Commission's action Thursday said it could cause direct and irreparable public harm. According to marketing information described by Texas Media, one part of GS Partners’ business provides digital assets related to the metaverse Lydian World, and the other part invests in the G999 Tower, a 36-story building in Dubai. GS Partners, GS Smart Finance and GS Wealth conducted three rounds of Metaverse real estate sales starting in September 2021. At the time, investors were told they could purchase XLT vouchers, or tokens representing ownership of one square inch of units in the company’s G999 Tower Metaverse, for 9.63 USDT each. However, after failing to reach its $175 million offering fundraising target, the token’s value quickly depreciated, falling to less than 0.0000049 USDT per coin. (CoinDesk)