- The Texas State Securities Board has secured a settlement with GS Partners and GSB Group, ensuring full refunds for Texans who invested with the companies
- The settlement includes returns on fiat and cryptocurrency deposits, regardless of the products or services purchased from GSB
- AlixPartners has been appointed to manage the claims process for clients, with costs covered by the respondents
The Texas State Securities Board has reached a significant settlement with GSB Gold Standard Corporation AG and its affiliates, ensuring full refunds for Texans who invested in the fraudulent company. The settlement, led by a coalition of state and provincial securities regulators, will see clients who deposited fiat currency or cryptocurrency with GS Partners and GSB Group eligible for a return of their funds. Last November, the businesses were accused of violating state laws through the sale of unqualified securities and of making “material misrepresentations and omissions to investors related to crypto asset investments.”
Celebrity Endorsement Attracted Investors
Texas Securities Commissioner Travis J. Iles announced the settlement yesterday following an extensive investigation into GSB Group’s practices, which involved the alleged sale of unregistered securities tied to digital assets and metaverses.
“This settlement ensures that Texans will recover their deposits, regardless of the product or service purchased, marking a significant step in protecting investors from illegal securities offerings,” said Commissioner Iles.
The investigation, which began in October 2023, uncovered several alleged violations, leading to enforcement actions across multiple states, including Texas, Alabama, and Arizona. The exact scale of the fraud is unknown, but it is thought to be in the tens of millions of dollars, given that the companies enlisted celebrity endorsements such as Floyd Mayweather
“Rare” Victory for Regulators
Texans who invested with GSB Group can now expect to receive a full refund of their principal deposits, minus any withdrawals already made. AlixPartners, the firm selected to manage the claims process, brings substantial experience to the table, having previously handled high-profile cases such as the Bernie Madoff and FTX bankruptcy claims.
“This is a rare regulatory action that provides real financial relief to many investors,” Iles remarked, adding, “Unlike many cases where profits from misconduct are spent, this settlement ensures that clients can recover their funds.”
This resolution is a significant win for both the Texas State Securities Board and investors, providing a clear path for the recovery of funds and holding GSB Group accountable for its actions.
