Investors of an allegedly $1 billion fraudulent crypto scheme are set to receive refunds. The TSSB secured a settlement deal with the perpetrators, Josip Heit, and his Gold Standard Bank (GSB) who made fake promises of tokenized partial ownership of a skyscraper to its customers.
GSB Investors to Get Refund
As part of the settlement, Heit and GSB will not face monetary penalties, but instead provide refunds to eligible US customers in the affected states, compensating those impacted by their actions. This includes Arizona, Texas, Alabama, Arkansas, and Georgia.
Even though Heit and GSB did not admit or deny any law violations, the settlement includes their ceasing from offering unregistered securities in the settling states. On the other hand, The settling states will withdraw all prior allegations of fraud or dishonest practices against the defendant as announced by their attorney, Avi Perry and Alex Spiro.
While expressing his satisfaction with the verdict, Heit said “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 our top priority.”
Skyscraper Crypto Scam. What happened?
A large investment scheme involving hundreds of thousands of investors collapsed after failing to raise $175 million through crypto sales linked to a skyscraper project. GSB’s subsequent trading losses in October 2023 worsened the situation, leading to restricted withdrawals for many investors.
The Texas State Securities Board, which led the investigation, aims to ensure 100% refunds (minus withdrawals) for investors in the U.S. and Canada. AlixPartners, the world’s largest business litigation firm, has been appointed to manage the refunds. They have extensive experience handling high-profile cases, including those involving Bernie Madoff and FTX.
Having settled with some states, eligible customers who invested in GSB’s products, including crypto tokens and educational programs, may receive a refund if their state joins the settlement.
The skyscraper scam shows that investors should conduct thorough research before committing funds. They should be cautious of high-risk investments that promise unusually high returns, as these can be fraudulent.
