Ponzi

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.
<h2 id="investors-will-get-full-refunds">Investors Will Get Full Refunds</h2>
This settlement was <a href="https://ssb.texas.gov/sites/default/files/2024-09/GSB_PressRelease_1.pdf" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">announced</a> 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 GSB’s 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, <a href="https://www.bloomberg.com/news/articles/2024-09-09/investors-in-1-billion-crypto-skyscraper-scheme-to-get-repaid" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">explained</a> 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.
<blockquote>
 “This is really a North American settlement. We don’t often have the opportunity to get pure financial relief on a broad scale. This is rare.”
</blockquote>
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 <a href="https://cryptopotato.com/ftx-influencers-in-trouble-while-advisors-pocket-103m-in-q1/" data-wpel-link="internal" rel="noopener noreferrer nofollow">managing</a> high-profile financial recovery cases, such as the aftermath of Bernie Madoff’s Ponzi scheme and the 2022 <a href="https://cryptopotato.com/ftx-bankruptcy-says-customers-will-get-100-of-their-money-back/" data-wpel-link="internal" rel="noopener noreferrer nofollow">bankruptcy</a> of cryptocurrency exchange FTX.
AlixPartners will conduct blockchain analysis to ensure that all affected investors are identified and able to claim their refunds.
<blockquote>
 “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.
</blockquote>
<h2 id="failed-investment-schemes">Failed Investment Schemes</h2>
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 <a href="https://cryptopotato.com/gs-partners-to-reimburse-investors-in-1b-crypto-scheme-after-settling-with-5-us-states/" rel="noopener noreferrer nofollow">GS Partners to Reimburse Investors in $1B Crypto Scheme After Settling With 5 US States</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

GS Partners to Reimburse Investors in $1B Crypto Scheme After Settling With 5 US States

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