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After over a year of negotiations, the Washington State Department of Financial Institutions (DFI) has joined a multi-state settlement agreement with GS Partners. Accused of violations under Washington’s Securities Act, the case centers on GS Partners’ Metacertificates and a multi-level marketing scheme. Investors can now submit claims through a newly established portal, opening in November 2024, to seek compensation in digital currency.
Washington Joins Settlement Against GS Partners Over Securities Violations
The Washington State Department of Financial Institutions (DFI) has joined a multi-state settlement agreement with GS Partners after over a year of negotiations. The DFI, alongside other state regulators, filed charges against GS Partners in November 2023 for violating Washington’s Securities Act.
The charges involve Swiss Valorem Bank Ltd., GSB Gold Standard Bank Ltd., Josip Heit, and Stephen McNeal, with accusations centered on their MetaCertificates offerings and a multi-level marketing scheme. This action was coordinated by a multi-state task force, which also included participation from Canadian securities regulators.
Washington residents who invested with GS Partners are encouraged by DFI to submit claims through the Gold Standard Bank Settlement Program. The portal, anticipated to open in early November 2024, will accept claims for a 90-day period. Investors are advised to prepare documentation, such as cryptocurrency wallet addresses, transaction IDs, and records of deposits, before filing.
The announcement details that once submitted, “GS Partners will review your claim and supporting documentation to assess your eligibility for compensation,” adding:
Once GS Partners verifies your eligibility and the amount owed to you by GSB, the goal is to quickly pay you the verifiable amount in digital currency into a digital wallet address.
Last month, five states reached a settlement agreement with the GSB Group, namely Alabama, Arizona, Arkansas, Georgia, and Texas.
What do you think about Washington’s action against GS Partners and the securities violations at the heart of this case? Let us know in the comments section below.