US states settle with GSB Group over unregistered crypto sales
Five U.S. states have settled with GSB Group over allegations of unregistered securities sales linked to digital assets.
The states—Texas, Alabama, Arizona, Arkansas, and Georgia—will ensure residents receive refunds for all fiat and cryptocurrency deposits made with GSB Group and its affiliates, including GS Partners.
The settlement was announced by Texas Securities Commissioner Travis J. Iles, who noted that the Texas State Securities Board led a coalition of state and provincial securities regulators to address these concerns.
The case against GSB Group involves allegations of offering unregistered securities under the leadership of Josip Heit, who is the owner and chairman of GSB.
The digital assets in question included the "G999 token," tied to physical gold on a proprietary blockchain, "XLT Vouchers," representing ownership interests in a skyscraper, and investments in a staking pool within a metaverse called Lydian World.
The Texas State Securities Board's announcement clarified that in October 2023, the coalition began pooling resources and leveraging expertise to investigate the respondents' activities quickly.
This collaborative effort focused on uncovering the unregistered investment offerings linked to digital assets and metaverse-related projects.
As part of the settlement, Heit and the GSB entities have agreed to cease the sale of unregistered securities in these five states.
According to the statement from Heit’s legal representative, the agreement allows them to settle without admitting or denying any legal violations.
The lawyer emphasised, “Under the terms of the settlement, Mr. Heit and the GSB entities will consent—without admitting or denying any violations of law or that any product offered by the GSB entities is a security—to cease-and-desist from offering or selling unregistered securities in the settling states.”
No monetary penalties will be imposed on GSB Group or Heit.
Instead, the GSB entities have agreed to refund all eligible U.S. customers in the states involved.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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