According to Foresight News, several U.S. states have ordered GS Partners to cease operations and accused GS Partners of defrauding investors in multiple cryptocurrency schemes. GS Partners is an organization that includes GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd. and GSB Gold Standard Corporation AG, all of which are controlled by Josip Dortmund Heit. The affiliates are accused of violating state law by offering and selling substandard securities and making material misrepresentations and omissions to investors related to investments in crypto assets. Texas, Alabama and other jurisdictions are taking similar action.
Part of GS Partners’ business provides digital assets related to the Lydian World in the metaverse, and the other part invests in a 36-story “G999 Tower” in Dubai. GS Partners, GS Smart Finance and GS Wealth conducted three rounds of Metaverse real estate sales beginning in September 2021. Investors were told they could purchase XLT vouchers, or tokens representing ownership of one square inch of units in the company’s G999 Tower Metaverse, for 9.63 USDT each. However, after failing to reach its $175 million offering fundraising target, the token’s value quickly depreciated, falling to less than 0.0000049 USDT per coin.