TDCI Division of Securities Announces Tennessee’s Participation in Multistate Settlement with GSB Gold Standard, GS Partners

Tennessee Investors Will Have 90 Days to File Claim
Wednesday, October 23, 2024 | 09:19am

NASHVILLE – The Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division, along with other state securities regulators, announce that a multi-million dollar agreement has been reached with GSB Gold Standard Corporation AG, a company based in Germany that operates in the fintech and banking industries, and GSB Gold Standard Bank LTD, more commonly known as “GS Partners.” The settlement also names Josip Heit, the principal and Chairman of the Board of GS Partners, and other affiliated organizations that are often collectively known as the “GSB Group.”

GS Partners, its affiliated companies, and its representatives claim to have over 800,000 investors from more than 170 countries and to be close to completing $1 billion in transactions. Many of the products offered to investors were converted and often tied to a number of other tangible and intangible investments.

“Tennesseans who purchased any product or service from GSB Group should contact TDCI’s Division of Securities today so that we might help affected investors begin preparing for the claims process,” said TDCI Assistant Commissioner of Securities Elizabeth Bowling. “Consumers should contact us by phone at (615) 741-5900 or visit us online today for more information.”  

The relevant offerings of investments were tied to digital assets and the metaverse, including the “G999 token,” a digital asset deployed on a proprietary blockchain; “XLT Vouchers,” a digital asset representing ownership interests in a skyscraper; and investments in a “staking pool” in a metaverse known as “Lydian World.”

Tennessee consumers who invested in or deposited funds with GSB Gold Standard Corporation AG or GSB Gold Standard Bank LTD will be eligible to receive the value of their investments or deposits, less the value of any withdrawals. Investors will have 90 days to file a claim once the claims process has opened, which is expected to open in November. As Tennessee is participating in a multistate settlement, these claims will be managed by AlixPartners LP, a firm with extensive experience in managing very large investment refunds in conjunction with state and federal regulators.

The agreement will require the respondents to return the full amount of all monies and/or cryptocurrencies invested or deposited with GSB Group, GS Partners and its affiliates, regardless of the product or service purchased from the respondents.

More information about filing a claim will be shared by TDCI’s Securities Division when available. Additional information about the settlement can be viewed on a website maintained by AlixPartners available here.   

All communications with TDCI's Securities Division are protected and deemed confidential as a matter of law.  

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