Facing rigorous regulatory scrutiny across multiple U.S. states, GS Partners, a Web3 company, is contending with accusations ranging from violations of securities laws to false claims and omissions in connection with the sale of unregistered tokenized assets to retail investors. Legal actions initiated by regulators specifically target various entities under the GS Partners umbrella, including GSB Gold Standard Bank Ltd., Swiss Valorem Bank Ltd., and GSB Gold Standard Corporation AG.

GS Partners is accused of marketing and selling digital tokens tied to various assets, such as the “G999 Tower,” a 36-story Dubai skyscraper, and tokens associated with a metaverse real estate project called the Lydian World. The company allegedly made claims of “lucrative profits” and “generational wealth” to enhance the appeal of these investments, asserting that its digital assets and blockchain technologies are backed by gold.

In addition to these allegations, GS Partners is reported to have operated a multi-level marketing platform offering “MetaCertificates,” which authorities claim is part of a broader investment fraud scheme. Notably, the company enlisted high-profile athletes like Floyd Mayweather Jr. and Roberto Carlos to endorse these investments.

Legal proceedings against GS Partners are led by states like California and Texas, both of which have ordered the company to cease all operations immediately. Other states, including Alabama, Kentucky, New Jersey, Wisconsin, and more, are also presenting allegations against GS Partners. The primary objective of these regulatory actions is to halt the alleged fraudulent operations of GS Partners and protect retail investors from further harm.