TRENTON, N.J. — New Jersey Attorney General Matthew J. Platkin is urging residents to withdraw their investments from GS Partners following a multistate settlement that addresses alleged securities violations by the company and its affiliates. The agreement, announced Monday, entitles New Jersey investors to a full refund of assets invested in products tied to digital assets and metaverse technology.
The settlement involves GSB Gold Standard Corporation AG, a Germany-based company, and its affiliated entities, including GSB Gold Standard Bank LTD, which does business as GS Partners. The company and its owner, Josip Heit, allegedly marketed unregistered investment products, including virtual land, tokenized shares, and cryptocurrency staking pools, to New Jersey investors and others. According to state officials, GS Partners promoted these investments with promises of high returns in emerging digital markets, such as the metaverse.
“The creators of innovative investment products derived from evolving technologies in the securities market are not exempt from the laws that pertain to traditional securities,” said Attorney General Platkin. He emphasized New Jersey’s commitment to protecting investors from companies that attempt to bypass state securities laws with speculative, high-risk offerings.
The investigation by New Jersey’s Bureau of Securities, part of the Division of Consumer Affairs, revealed that GS Partners allegedly lured investors by promoting products like metaverse land plots, staking pools, and vouchers for tokenized shares. These investment products were marketed with gamification features that encouraged investors to increase their principal to unlock promised passive income. Investigators found that many of these promises were unsubstantiated, putting investors at risk.
Under the terms of the settlement, GS Partners must cease offering and selling unregistered securities in New Jersey. The company is also required to return the full value of invested funds or cryptocurrency deposits to New Jersey residents, with adjustments only for any prior withdrawals. The claims process, managed by consulting firm AlixPartners, LLP, is set to begin in early November. Investors will not incur fees to cover the cost of administering the refunds.
“This agreement, in effect, is designed to make New Jersey investors whole,” said Elizabeth M. Harris, Bureau Chief. The Bureau is encouraging all New Jersey residents who invested with GS Partners to take advantage of the refund opportunity, which applies to all products sold by the company if the purchases can be substantiated.
GS Partners is required to notify investors on how to liquidate their assets through its platform and provide detailed instructions on the redemption process. Upon completion of the refund process and compliance with other settlement conditions, GS Partners will enter into a consent order with New Jersey’s Bureau of Securities to permanently cease the sale of unregistered securities to New Jersey residents.
The Bureau’s investigation into GS Partners was led by Deputy Bureau Chief Amy Kopleton and a team of investigators from the Bureau’s Enforcement Unit. For further information on the settlement or the claims process, New Jersey investors are directed to visit AlixPartners’ settlement website at https://gsbsettlement.com.