US states reach $1b crypto fraud settlement, owner promises refunds
No monetary penalties will be imposed – instead, Heit and the GSB companies have agreed to reimburse all eligible U.S. customers in the settling states
The scheme, led by Josip Heit and his GSB Group, attracted investors with promises of tokenized partial ownership in a skyscraper, investments in the metaverse, and a cryptocurrency allegedly convertible into gold, according to Bloomberg.
Under the terms of the settlement and according to a press release, Heit and GSB will agree to cease and desist from offering or selling unregistered securities in the settling states without "admitting or denying any violations of law" by GSB.
Avi Perry and Alex Spiro, attorneys representing Heit and GSB, announced that the settling states will withdraw all previous allegations of fraud or dishonest practices as part of the settlement.
No monetary penalties will be imposed – instead, Heit and the GSB companies have agreed to reimburse all eligible U.S. customers in the settling states.
"We welcome this settlement... We are committed to refunding all eligible customers through the claims process. Our customers always come first. Protecting the brand, our reputation, and our customers is Josip Heit, Chairman of GSB Germany
