Failed ‘$175M’ real estate token raise draws ire of Texas regulators

The Texas State Securities Board has accused a community of firms beneath the “GS” model and working from Germany of fraudulent actions “tied to digital property, investments in a staking pool in a proprietary metaverse.” The community of firms is managed by Josip Dortmund Heit.

As described by regulators on November 16, respondents GS Companions, GS Good Finance and GS Wealth allegedly held three rounds of metaverse property gross sales starting September 2021. On the time, buyers had been knowledgeable that might buy XLT Vouchers, or BNB Chain tokens that represented possession of 1 sq. inch of a unit within the firm’s G999 Tower metaverse, at 9.63 Tether (USDT) per voucher. Nevertheless, the token quickly misplaced its worth, to lower than 0.0000049 USDT apiece on decentralized alternate PancakeSwap, after the respondents failed to succeed in its $175 million increase goal for the providing.

“Respondents haven’t been registered with the Securities Commissioner as sellers or brokers at any time materials hereto.”

Regulators allege that different funding merchandise created by GSB, corresponding to its Lydian World metaverse tokens, gold tokens, G999 coin, and Elemental Certificates, additionally constituted unregistered safety choices. The Texas State Securities Board has filed an emergency enforcement motion for the GSB group of firms to stop and desist from such actions within the state.

On August 15, the Ontario Securities Fee issued a warning that GS Companions was not registered to do enterprise within the Canadian province of Ontario. Earlier warnings concerning the agency had been additionally printed by securities regulators within the Canadian provinces of Saskatchewan, British Columbia, Alberta, and Quebec. 

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