Five US States Offer 100% Refunds for Victims of 'Crypto Multi-Level Marketing' Scheme
CryptoNewsTerminal Staff09 Sep, 2024
Five US States Offer 100% Refunds for Victims of 'Crypto Multi-Level Marketing' Scheme
Five US states have reached an agreement with GS Partners to provide a 100% refund of investments made in the company's 'crypto multi-level marketing' scheme. GS Partners, which had promoted various crypto projects, including tokenized investments in a Dubai skyscraper, reportedly generated $1 billion in revenue up until September last year. However, in mid-November, regulators in 10 US states and one Canadian province took enforcement actions against GS Partners and its owner, Josip Heit, alleging fraud and ordering them to immediately cease selling securities. Under the terms of the agreement, investigations into GS Partners in Texas, Alabama, Arizona, Arkansas, and Georgia will be discontinued, and GS Partners will return 100% of customer funds in those states. This agreement is a significant victory for investors who were defrauded by GS Partners. It is also a warning to other companies that are considering engaging in similar schemes.
