TechFlow reported on September 10, according to CoinGape, that regulatory authorities from five U.S. states—Texas, Alabama, Georgia, Arkansas, and Arizona—announced a settlement agreement with GSB Group over a $1 billion cryptocurrency scam. The fraudulent scheme involved products such as tokenized ownership of skyscrapers, metaverse investments, and crypto assets redeemable for gold, affecting thousands of investors in the United States and Canada.
Joe Rotunda, Director of the Texas State Securities Board, stated that customers within the participating states will receive full compensation. In October 2023, GSB had announced losses and restricted investors from withdrawing certain profits. The settlement is being administered by AlixPartners, the firm previously involved in the FTX bankruptcy management.
