Five U.S. states have reached a settlement with GSB Group over unregistered securities sales tied to digital assets. Residents of the states will receive refunds for all fiat and cryptocurrency deposits. GSB chairman Josip Heit agreed to cease selling unregistered securities without admitting or denying violations.
5 US States Settle With GSB Group Over Unregistered Crypto Sales
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5 States Reach Settlement With GSB Group Over Unregistered Securities Sales
Texas Securities Commissioner Travis J. Iles announced this week that the Texas State Securities Board has reached a settlement with GSB Gold Standard Corporation AG, GSB Gold Standard Bank Ltd., and their affiliated entities (collectively known as GSB Group).
The settlement addresses claims regarding unregistered securities sales involving Josip Heit, alleged owner and chairman of the board. As part of the agreement, Texans will receive refunds for all fiat and cryptocurrency deposited with GSB Group and GS Partners, regardless of the products purchased.
“The settlement is the product of the work of a coalition of state and provincial securities regulators led by the Texas State Securities Board, as well as agencies from Alabama, Arizona, Arkansas, and Georgia,” the announcement states, adding:
In October 2023, the working group began pooling their resources and leveraging their expertise to quickly investigate respondents and their alleged offering of investments tied to digital assets and metaverses.
They included “G999 token, a digital asset deployed on a proprietary blockchain tied to physical gold; XLT Vouchers, a digital asset purportedly representing ownership interests in a skyscraper; and investments in a so-called staking pool in a metaverse known as Lydian World,” the Texas regulator added.
According to the settlement, Heit and the GSB entities will cease selling unregistered securities without admitting or denying any violations of law. Josip Heit’s lawyer issued a statement, confirming that a settlement has been reached to resolve the civil investigations of U.S. state securities regulators in Alabama, Arizona, Arkansas, Georgia, and Texas.
“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,” the lawyer detailed, adding:
No monetary penalties will be imposed. Instead, Mr. Heit and the GSB companies have agreed to refund all eligible U.S. customers in the settling states.
What do you think about the settlement between state regulators and GSB Group over unregistered securities sales? Let us know in the comments section below.
