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Texas regulators express concern over real estate token raise that falls short of the targeted $175m

In a significant development, the Texas State Securities Board has accused a network of companies operating under the "GS" brand, with ties to Germany and controlled by Josip Dortmund Heit, of engaging in fraudulent activities related to digital assets and a proprietary metaverse. The entities in question, including GS Partners, GS Smart Finance, and GS Wealth, are alleged to have conducted three rounds of metaverse property sales starting in September 2021.


Texas flag in wind

Investors were enticed with the opportunity to purchase XLT Vouchers or BNB Chain tokens representing ownership of one square inch of a unit in the G999 Tower metaverse at a price of 9.63 USDT per voucher. However, after failing to reach the targeted $175 million raise for the offering, the token's value plummeted to less than 0.0000049 USDT on PancakeSwap.


Regulators argue that these entities, including the creation of products like Lydian World metaverse tokens, gold tokens, G999 coin, and Elemental Certificates, were involved in unregistered security offerings. Consequently, the Texas State Securities Board has initiated an emergency enforcement action, demanding that the GSB group cease and desist from such activities within the state.


This comes on the heels of warnings from the Ontario Securities Commission and other Canadian provinces regarding GS Partners' lack of registration for doing business. The unfolding situation underscores the growing need for vigilance and regulatory oversight in the evolving cryptocurrency landscape. Stay informed for further updates on this matter.

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