Secretary Raffensperger Secures Return of Funds for Georgia GS Partners Investors
Atlanta – Secretary Raffensperger and the Securities Division of the Secretary of State’s office announced a settlement against GSB Gold Standard Corporation AG, a German company purportedly operating in the financial and banking technology industry. The settlement names Josip Heit, the alleged owner and Chairman, and other entities collectively known as GSB Group. This settlement ensures that Georgians will receive a return of all investments deposited with GSB Group or GSB Partners.
Georgia, a core member of the working group that investigated this entity, took part in the action which began in October 2023 that looked into the actions taken and investments offered by GSB Group. The purported investments were tied to digital assets and metaverses, including 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. Their investigation also focused on the alleged sale of Elemental and Success Series Certificates, whereby purchasers were allegedly incentivized through gamification to continue to add more and more principal to their certificates to unlock variously passive income features, such as the payment of weekly or monthly passive income.
“As our securities markets rapidly evolve and many legitimate firms offer cutting edge investments, there’s also a growing number of unscrupulous entities who are preying on unwitting Georgians,” said Secretary of State Brad Raffensperger. “Sellers of allegedly illegal securities are using copycat tactics to deceive the public. They’re on notice.”
In January 2024, Georgia joined other state regulators in filing an enforcement action against GSB Group and related entities to stop selling allegedly illegal investment products. Today, the state announces the execution of a “term sheet” for the settlement. The resolution was driven, in part, by the opportunity to provide significant financial relief to clients of GS Partners and other members of GSB Group. Georgians and residents of other participating jurisdictions who deposited principal with the respondents will be eligible to receive the value of their deposits, less the value of any withdrawals. The settlement applies to all products and services sold by the respondents, including G999 token, the XLT Vouchers, the so-called staking pool in the metaverse and Elemental and Success Series Certificates, so long as the investments were purchased from respondents.
“This settlement should effectively make many, many Georgians whole,” added Raffensperger.
Secretary Raffensperger strongly encourages Georgians that deposited fiat currency or digital assets with the respondents to begin preparations by contacting the Securities Division at [email protected].
“If you live in Georgia, and you purchased any product or service from GSB Group, please reach out to us as soon as possible. We can help you begin preparing for the claims process,” said Assistant Commissioner of Securities Noula Zaharis. Communications with the Georgia Secretary of State’s Securities Division are protected and deemed confidential as a matter of law.
Assuming the respondents successfully return deposits to clients as required by the term sheet, GSB Group and Mr. Heit will consent to the entry of an enforcement order that concludes they illegally offered and/or sold securities that were not registered pursuant to state law.
###