The Hawaii Department of Commerce and Consumer Affairs has joined other state and provincial securities regulators in a settlement with the German-owned group of banking and “fintech” entities known as GS Partners.

What You Need To Know

  • GS Partners is accused of violating securities laws by offering and selling unregistered securities, including crypto-related investments, in exchange for supposed lucrative returns
  • According to DCCA, GS Partners claimed to have over 800,000 investors from more than 170 countries and to be close to completing $1 billion in transactions
  • Under terms of the settlement, GS Partners will compensate eligible investors by paying the difference between the value of their investments or deposits and the value of any withdrawals
  • A claims portal will open on Friday and investors will have until May 22 to file a claim

 

DCCA’s Securities Enforcement Branch worked with regulators led by Texas along with agencies from Alabama, Arizona, Arkansas and Georgia to settle claims against GSB Gold Standard Corporation AG, GSB Gold Standard Bank, Ltd., GSB principal and chairman of the board Josip Heit and other affiliated entities.

“The Securities Enforcement Branch joined this multi-jurisdictional settlement to allow Hawaii investors to reclaim the funds they invested with GS Partners,” said commissioner of securities Ty Nohara. “We strongly encourage Hawaii investors to take advantage of this opportunity to be made whole.”

GS Partners is accused of violating securities laws by offering and selling unregistered securities, including crypto-related investments, in exchange for supposed lucrative returns.

According to DCCA, GS Partners claimed 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 tied to tangible and intangible investments, including digital assets and the metaverse, such as 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.”

Under terms of the settlement, GS Partners will compensate eligible investors by paying the difference between the value of their investments or deposits and the value of any withdrawals. 

A claims portal will open on Friday and investors will have until May 22 to file a claim. The claims process is being managed by independent claims administrator AlixPartners, LLP.

For details on how to submit a claim, visit: gsbsettlement.com.

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.