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<div class="sg-post-des">
 "GS Partners promoted the products through a multilevel marketing scheme paying lavish commissions," regulators say.
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<div class="cointelegraph">
 <p>The Texas State Securities Board has accused a network of companies under the "GS" brand and operating from Germany of fraudulent activities "tied to digital assets, investments in a staking pool in a proprietary metaverse." The network of companies is controlled by Josip Dortmund Heit.</p>
 <p>As described by <a rel="noopener noreferrer nofollow" title="regulators" href="https://thebittimes.com/tag/regulators.html">regulators</a> on November 16, respondents GS Partners, GS Smart Finance and GS Wealth allegedly held three rounds of metaverse property sales beginning September 2021. At the time, investors were informed that could purchase XLT Vouchers, or BNB Chain <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a>s that represented ownership of one square inch of a unit in the company's G999 Tower metaverse, at 9.63 Tether (USDT) per voucher. However, the <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a> rapidly lost its value, to less than 0.0000049 USDT apiece on decentralized exchange PancakeSwap, after the respondents failed to reach its $175 million <a rel="noopener noreferrer nofollow" title="raise" href="https://thebittimes.com/tag/raise.html">raise</a> target for the offering.</p>
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  "Respondents have not been registered with the Securities Commissioner as dealers or agents at any time material hereto."
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 <p>Regulators allege that other investment products created by GSB, such as its Lydian World metaverse <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a>s, gold <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a>s, G999 coin, and Elemental Certificates, also constituted unregistered security offerings. The Texas State Securities Board has filed an emergency enforcement action for the GSB group of companies to cease and desist from such activities in the <a rel="noopener noreferrer nofollow" title="state" href="https://thebittimes.com/tag/state.html">state</a>.</p>
 <p>On August 15, the Ontario Securities Commission issued a warning that GS Partners was not registered to do business in the Canadian province of Ontario. Previous warnings regarding the firm were also published by securities <a rel="noopener noreferrer nofollow" title="regulators" href="https://thebittimes.com/tag/regulators.html">regulators</a> in the Canadian provinces of Saskatchewan, British Columbia, Alberta, and Quebec.&nbsp;</p>
 <p><strong>Related:&nbsp;Texas lawmaker introduces resolution to protect Bitcoin miners and HODLers</strong></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/failed-175m-real-estate-token-raise-draws-ire-of-texas-regulators-tbt70608.html">https://thebittimes.com/failed-175m-real-estate-token-raise-draws-ire-of-texas-regulators-tbt70608.html</a></p>

Failed '$175M' real estate token raise draws ire of Texas regulators

TheBitTimes

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