CONCORD, NH — The New Hampshire Bureau of Securities Regulation, under the leadership of Secretary of State David M. Scanlan, is working to stop an ongoing international scheme.
The action accuses GSB Gold Standard Bank LTD, doing business as GS Partners, and other members of GSB Group of selling fraudulent certificates tied to digital assets, as well as investments in a virtual world where individuals can make virtual real estate purchases with cryptocurrency.
Additionally, the order alleges the parties failed to raise $175 million through the sale of cryptocurrencies that represented ownership of a skyscraper, causing significant losses for investors that purchased and held the underlying assets.
GS Partners promoted investments through a multilevel marketing scheme, paying lavish commissions from up to seven different sources. It also allegedly promoted the investments and operations of GSB Group through numerous social media accounts and videoconferences. GS Partners touted its support of athletes such as boxer Floyd Mayweather and footballer Roberto Carlos, according to the action.
In October 2023, GS Partners allegedly announced losses tied to trading, and these losses negatively impacted many purchasers of certificates. According to the order, these losses led to the implementation of a “Market Protection System” (MPS). The MPS allegedly limited the value of many withdrawals by transferring up to 50 percent of the withdrawal to an undisclosed “13-month lock up vehicle,” meaning the money is inaccessible for 13 months, and increased fees paid with receiving assets.
A working group of securities regulators from the United States and Canada led the action. The filings mark the most recent efforts to protect the public from alleged misconduct.
Regulators from Canada previously warned the public about GS Partners and other members of GSB Group.
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