New Jersey urges residents to get asset refund from firm facing securities charges

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TRENTON, NJ — New Jersey Attorney General Matthew J. Platkin is urging residents to pull their investments from GS Partners, following a multistate settlement that addresses alleged securities violations by the company and its affiliates. The settlement, announced Monday, entitles New Jersey investors to a full refund of assets invested in products related to digital assets and metaverse technology.

The deal involves GSB Gold Standard Corporation AG, a company based in Germany, and its affiliated entities, including GSB Gold Standard Bank LTD, doing business as GS Partners. The company and its owner, Josip Heit, allegedly marketed unregistered investment products, including virtual land, tokenized shares and cryptocurrency betting pools, to investors in New Jersey and others. According to state officials, GS Partners promoted these investments with promises of high returns in emerging digital markets such as the metaverse.

“Creators of innovative investment products derived from evolving securities market technologies are not exempt from the laws that apply to traditional securities,” Attorney General Platkin said. He emphasized New Jersey’s commitment to protecting investors from companies that try to circumvent state securities laws with speculative, high-risk offerings.

The investigation by the New Jersey Securities and Exchange Commission, part of the Consumer Division, revealed that GS Partners allegedly lured investors by promoting products such as metaverse lands, staking pools and tokenized stock vouchers. These investment products were marketed with gamification features that encouraged investors to increase their capital to unlock the promised passive income. Investigators found that many of these promises were unfounded, putting investors at risk.

Under the terms of the settlement, GS Partners must cease offering and selling securities not registered in New Jersey. The Company must also return the full value of invested funds or cryptocurrency deposits to New Jersey residents, with adjustments only for any prior withdrawals. The claims process, managed by consulting firm AlixPartners, LLP, is scheduled to begin in early November. Investors will not incur fees to cover the costs of administering redemptions.

“This agreement, in fact, is designed to make New Jersey investors whole,” said Elizabeth M. Harris, chief of the bureau. The Bureau encourages all New Jersey residents who have invested with GS Partners to take advantage of the refund opportunity, which applies to all products sold by the company, if the purchases can be justified.

GS Partners is required to notify investors on how to liquidate their assets through its platform and provide detailed instructions on the redemption process. Upon completion of the repayment process and compliance with other settlement conditions, GS Partners will enter into a consent order with the New Jersey Securities Bureau to permanently cease the sale of unregistered securities to New Jersey residents.

The Bureau’s investigation into GS Partners was led by Bureau Deputy Chief Amy Kopleton and a team of investigators from the Bureau’s Enforcement Unit. For additional information about the settlement or compensation process, New Jersey investors are directed to visit AlixPartners’ settlement website at https://gsbsettlement.com.