Wisconsin Joins U.S. and Canadian Securities Regulators in Issuing an Order Against GSPartners in Alleged Global Fraud Scheme
Wisconsin’s Action Alleges Fraud Tied to Sales of Investments Through a Metaverse and Metacertificates
MADISON, Wis. – The Wisconsin Department of Financial Institutions (DFI) today announced an enforcement action to stop an ongoing international fraud scheme. The action accuses GSB Gold Standard Bank LTD, doing business as GSPartners, of offering and selling fraudulent certificates tied to digital assets and foreign currency exchanges, as well as investments in staking pools in a proprietary metaverse.
“Bad actors are leveraging widespread public interest in the metaverse to perpetrate fraudulent investment schemes through suspect solicitations for unregistered securities tied to the metaverse,” said DFI Secretary-designee Cheryll Olson-Collins. “They’re developing high-tech ploys to create a facade of legitimacy and deceive victims. Nevertheless, we’re working to proactively stop this type of fraud and protect the public from irreparable harm.”
GSPartners is currently marketing certificates tied to digital assets, according to the order. Investors allegedly purchase the certificates by paying GSPartners, and then continue to pay GSPartners to unlock the certificate’s features. These features purportedly increase the value of the certificate and activate the payment of weekly and monthly profits. In some cases, investors that unlock streams of income must continue to pay money to prevent the features from lapsing, according to the order.
The DFI recognizes the valuable assistance of other U.S. and Canadian members of the working group. Orders were also issued by several securities regulators, including Alabama, British Columbia, California, Kentucky, and Texas.
The DFI cautions investors to thoroughly research any investment opportunity before investing and verify the registration of individuals offering investment opportunities, investment advice for a fee, and any products they offer by contacting the DFI’s Division of Securities at (608) 266-2139 or DFISecurities@dfi.wisconsin.gov. Investors living in states other than Wisconsin, or in provinces, can contact their local regulatory agency at https://www.nasaa.org/contact-your-regulator/.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
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