The Texas State Securities Board has reached a $1 billion settlement with GSB Gold Standard Corporation AG and affiliated entities, known as GSB Group, over its alleged illegal crypto offerings, according to a Sept. 9 press release.
The settlement, spanning multiple states, guarantees full refunds regardless of the products or services purchased, including digital assets like the G999 token and Lydian World metaverse investments for over 800,000 investors.
Settlement
The settlement includes claims related to various offerings, such as the G999 token, tied to physical gold, XLT vouchers linked to a skyscraper, and staking pools in the Lydian World metaverse.
AlixPartners LP, a firm with expertise in complex financial investigations such as the Bernie Madoff and FTX cases, will administer the claims process.
The settlement ensures full repayment to investors in Texas and participating states for all fiat and crypto deposits made with GSB Group and GS Partners.
According to a North American Securities Administrators Association (NASAA) post, 12 US states are considered participating.
Texas Securities Commissioner Travis J. Iles stated:
“The securities markets continue to rapidly evolve, and many legitimate firms are using new technologies to develop cutting-edge products and services, increase efficiencies and contribute to overall economic development.”
Resolution within a year
The investigations began in October 2023 and were coordinated by state and provincial securities regulators from Texas, Alabama, Arizona, Arkansas, and Georgia.
Four weeks later, in November 2023, the authorities involved deployed enforcement actions to stop allegedly illegal offers and sales in their jurisdictions.
Starting on Sept. 9, the state agencies involved in the investigation will announce the execution of a term sheet for settlement. This will make all other US state securities regulators, as well as some Canadian provincial securities regulators, able to participate in the settlement on equal terms.
Moreover, the Texas State Securities Board stated that the action aims to provide “significant financial relief” to affected investors.
NASAA Enforcement Committee Chair Amanda Senn, Director of the Alabama Securities Commission, and Vice-Chair Joe Rotunda concluded:
“The resolution of this complex case will provide significant financial relief to investor. The settlement is an important reminder to every firm and promoter to comply with securities laws.”
Credit: Source link