Mon Sep 09 15:18:40 UTC 2024: ## Texas Leads Multi-State Settlement for $1 Billion Cryptocurrency Scam

**Austin, TX** – In a major victory for investors, Texas and four other states have reached a settlement with the operators of an alleged $1 billion cryptocurrency investment scheme. The scheme, orchestrated by Josip Heit and his GSB Group, involved the sale of tokenized partial ownership in a skyscraper, metaverse investments, and a cryptocurrency promising gold-backed rewards.

The Texas State Securities Board, spearheading the investigation, aims to return hundreds of millions of dollars to defrauded investors across the US and Canada. “We have negotiated a settlement that will ensure all clients…receive 100% of their deposits, less any withdrawals,” said Joe Rotunda, Enforcement Director at the Texas State Securities Board. “This is really a North American settlement…rare.”

The scheme, which unfolded over several years, targeted hundreds of thousands of investors. GSB, according to regulators, failed to raise the necessary $175 million through the sale of cryptocurrencies linked to the skyscraper, causing significant losses for investors. In October 2023, GSB announced trading losses and began restricting investor withdrawals.

The settlement currently encompasses Texas, Alabama, Arizona, Arkansas, and Georgia, and will be open to any other state or Canadian province that joins. All investors who purchased GSB products, including crypto tokens and educational services, are eligible for restitution.

The claims process will be overseen by AlixPartners LP, a firm known for its work with victims of Bernie Madoff’s Ponzi scheme and the FTX bankruptcy. “Our goal is to identify all of the clients and make sure they know about this process,” Rotunda said. “Any state that wants to join…can sign the term sheet starting on Monday.”

This settlement marks a significant step in combating the growing number of cryptocurrency scams. While many such schemes have resulted in only partial restitution, this settlement promises a full return of funds to victims, offering hope for a more secure future for investors in the cryptocurrency market.

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