GS Partners (Swiss Valorem Bank) has come under serious legal scrutiny in the United States. The company is accused of violating securities laws and falsely claiming its tokenized assets. These assets, which were sold to retail investors, are said to be unregistered, drawing the attention of regulatory bodies.
Legal Actions Targeting GS Partners Entities
The legal actions are not limited to GS Partners alone. They extend to several related companies, including GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd., and GSB Gold Standard Corporation AG. These entities are collectively charged with selling digital tokens connected to various assets. This has raised significant concerns among regulators.
One of the major accusations against GS Partners involves the promotion of a Dubai skyscraper, the “G999 Tower,” and tokens linked to a metaverse real estate project named Lydian World. GS Partners allegedly advertised these investments as opportunities for substantial profits and long-term wealth. Furthermore, the company claimed its digital assets and blockchain technologies were backed by gold, which authorities now challenge as part of broader allegations of investment fraud.
Involvement of Celebrity Endorsements
Adding to the situation’s complexity, GS Partners reportedly used celebrity endorsements from boxer Floyd Mayweather Jr. and football (soccer) star Roberto Carlos to promote their investments. This strategy has come under scrutiny as part of the ongoing investigations.
Lastly, leading the legal charge against GS Partners are states like California and Texas, which have already issued orders for the company to cease its operations immediately. Other states, including Alabama, Kentucky, New Jersey, and Wisconsin, have presented similar allegations. The primary aim of these regulatory bodies is to stop the alleged fraudulent activities of GS Partners and protect retail investors from potential losses.