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Several U.S. states have ordered GS Partners to cease operations after the project was accused of defrauding investors in multiple cryptocurrency schemes.

According to reports, several states in the United States have ordered GS Partners to cease operations and accused GS Partners of deceiving investors in multiple cryptocurrency schemes. GS Partners is an organization that includes GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd., and GSB Gold Standard Corporation AG, all of which are controlled by Josip Dortmund Heit.

According to a case filed by the California Department of Financial Protection and Innovation on Thursday, these affiliated companies are accused of violating state laws by offering and selling unqualified securities and making significant false statements and omissions to investors related to cryptocurrency investments. Texas, Alabama, and other jurisdictions are also taking similar actions. The action taken by the Texas Securities Commission on Thursday stated that this could cause direct and irreparable public harm. According to marketing information described by Texas media, a part of GS Partners' business provides digital assets related to the metaverse Lydian World, and another part invests in the 36-story G999 Tower in Dubai.

GS Partners, GS Smart Finance, and GS Wealth conducted three rounds of metaverse real estate sales starting in September 2021. At that time, investors were told that they could purchase XLT vouchers or tokens representing unit ownership of G999 Tower in the metaverse, with each voucher priced at 9.63 USDT. However, after failing to reach its fundraising target of $175 million, the value of the token quickly depreciated, with each token falling to less than 0.0000049 USDT. (CoinDesk)

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