GS Partners to Reimburse Investors in $1B Crypto Scheme After Settling With 5 US States
GS Partners, a European-based entity involved in multiple cryptocurrency investment schemes, has agreed to refund all funds to investors in a settlement with five U.S. states.
The agreement will see the firm pay back 100% of investor deposits in exchange for the dismissal of all civil claims and ongoing investigations.
Investors Will Get Full Refunds
This settlement was announced on Monday by the Texas State Securities Board (TSSB) and includes the states of Texas, Alabama, Arizona, Arkansas, and Georgia. Any client who invested in GSBs offerings will be eligible to recover their funds, provided their state or Canadian province participates in the settlement.
Joe Rotunda, enforcement director at the TSSB, explained in an interview with Bloomberg, We have negotiated a settlement that will ensure that all clients in any state or province that joins the settlement receive 100% of their deposits, less any withdrawals, he said.
This is really a North American settlement. We dont often have the opportunity to get pure financial relief on a broad scale. This is rare.
According to the Bloomberg report, the alleged scheme was worth somewhere around $1 billion.
The claims process will be overseen by AlixPartners LP, a firm with experience in managing high-profile financial recovery cases, such as the aftermath of Bernie Madoffs Ponzi scheme and the 2022 bankruptcy of cryptocurrency exchange FTX.
AlixPartners will conduct blockchain analysis to ensure that all affected investors are identified and able to claim their refunds.
Our goal is to identify all of the clients and make sure they know about this process, Rotunda added. They have the opportunity to get their funds back, said Joe.
Failed Investment Schemes
Among the various crypto-related ventures was a high-profile attempt to tokenize partial ownership of a 36-floor skyscraper in Dubai. Promoted as a way for investors to earn passive income from leasing units in the tower, each token represented one square inch of the building.
Described as glorious and inspired by the winds of the desert, the G999 Tower attracted significant interest. However, the project failed to raise the necessary $175 million through token sales, and the value of the vouchers soon plummeted, leaving investors with near-worthless assets.
Hundreds of thousands of investors across the U.S. and Canada were impacted by the collapse of this and other offerings, including crypto tokens tied to a staking pool in the Lydian World metaverse and a gold-backed cryptocurrency.
GS Partners, which operated as a multi-level marketing (MLM) scheme, heavily relied on celebrity endorsements, including one from former professional boxer Floyd Mayweather, to promote these ventures.
The post GS Partners to Reimburse Investors in $1B Crypto Scheme After Settling With 5 US States appeared first on CryptoPotato.
Text source: CryptoPotato
