Five U.S. states have reached a settlement with Josip Heit and his GSB Group, the owners and operators of an alleged $1 billion cryptocurrency investment scheme. The scheme promised investors tokenized partial ownership in a skyscraper, investments in the metaverse, and a cryptocurrency convertible into gold. As part of the settlement, Heit and GSB will stop offering or selling unregistered securities in the settling states but will not admit any violations of law. The settling states will withdraw fraud allegations, and Heit and GSB have agreed to reimburse eligible U.S. customers without monetary penalties. The scheme collapsed after failing to raise the necessary funds and subsequent trading losses. The settlement covers Texas, Alabama, Arizona, Arkansas, and Georgia, and customers from those states who invested in GSB's products may be eligible for a refund managed by AlixPartners LP.



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