After more than a year of negotiations, the Washington State Department of Financial Institutions (DFI) has joined a multi-state settlement agreement with GS Partners. The case revolves around violations under Washington’s Securities Act, focusing on GS Partners’ Metacertificates and a multi-level marketing scheme. Investors will have the opportunity to file claims through a newly established portal, set to launch in November 2024, to seek compensation in digital currency.
Washington State DFI Takes Action Against GS Partners for Securities Violations
The Washington State Department of Financial Institutions (DFI) has officially become a part of a multi-state settlement agreement with GS Partners following extensive negotiations lasting over a year. The DFI, in collaboration with other state regulators, filed charges against GS Partners in November 2023 for violating Washington’s Securities Act.
The charges specifically pertain to Swiss Valorem Bank Ltd., GSB Gold Standard Bank Ltd., Josip Heit, and Stephen McNeal, with allegations centered on their MetaCertificates offerings and involvement in a multi-level marketing scheme. This legal action was coordinated by a multi-state task force, which also saw involvement from Canadian securities regulators.
Residents of Washington who have invested with GS Partners are encouraged by the DFI to submit claims through the Gold Standard Bank Settlement Program. The portal, expected to go live in early November 2024, will be open for a 90-day period to accept claims. Investors are advised to gather necessary documentation, including cryptocurrency wallet addresses, transaction IDs, and deposit records, prior to initiating their claim submission.
The official announcement outlines that upon submission, “GS Partners will review your claim and supporting documentation to determine your eligibility for compensation,” and further states:
Once GS Partners confirms your eligibility and the amount owed to you by GSB, the aim is to promptly transfer the verifiable amount in digital currency to a digital wallet address.
In recent developments, five states, namely Alabama, Arizona, Arkansas, Georgia, and Texas, have already reached a settlement agreement with the GSB Group.
Share your thoughts on Washington’s actions against GS Partners and the securities violations at the core of this case in the comments section below.