The European-based company, which was a defunct MLM scheme, reached a settlement with five U.S. states to reimburse investors for 100% of their crypto investments.
GS Partners, a European entity that is involved in multiple cryptocurrency investment schemes, has reached a settlement with five U.S. states in which it has undertaken to refund all funds to investors.
The agreement will result in the firm returning 100% of investor deposits in exchange for being relieved of all civil claims and ongoing investigations.
Texas, Alabama, Arizona, Arkansas, and Georgia are all part of this deal, which was revealed by the Texas State Securities Board (TSSB) on Monday. Anyone who put funds into GSB’s products will be able to get the funds back, as long as their state or Canadian province joins the deal.
In an interview with Bloomberg, Joe Rotunda, the enforcement director at the TSSB, stated, “We have negotiated a settlement that will guarantee that all clients in any state or province that participates in the settlement receive 100% of their deposits, minus any withdrawals.”
“This is essentially a North American settlement. The opportunity to obtain unadulterated financial relief on a comprehensive scope is not frequently available. Rare is this.”
The Bloomberg report indicates that the alleged conspiracy was valued at approximately $1 billion. AlixPartners LP, a company with experience in managing high-profile financial recovery cases, will supervise the claims process. This firm has previously managed the aftermath of Bernie Madoff’s Ponzi scheme and the 2022 bankruptcy of cryptocurrency exchange FTX.
For the purpose of identifying and reimbursing all afflicted investors, AlixPartners will implement blockchain analysis.
Rotunda further stated, “Our objective is to inform all consumers of this procedure and identify them.” Joe stated, “They have the opportunity to reclaim their funds.”
A high-profile endeavor to tokenize partial possession of a 36-story edifice in Dubai was among the numerous crypto-related ventures. Proposed as a means for investors to generate passive income by leasing units in the tower, each token represented one square inch of the building.
The “G999 Tower” garnered substantial interest, as it was characterised as “grand” and “inspired by the breezes of the desert.” Nevertheless, the project was unable to secure the requisite $175 million through token sales, and the vouchers’ value immediately plummeted, leaving investors with assets that were nearly worthless.
The collapse of this and other offerings, such as a gold-backed cryptocurrency and crypto tokens linked to a staking pool in the “Lydian World” metaverse, affected hundreds of thousands of investors in the United States and Canada.
The promotion of these ventures by GS Partners, a multi-level marketing (MLM) scheme, was largely reliant on celebrity endorsements, including one from former professional boxer Floyd Mayweather.
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