Last week BehindMLM reviewed DAO1. Based on a number of data points, we suspected it was yet another reboot of the collapsed GSPartners investment scheme.

Today BehindMLM can confirm DAO1 is the fifth GSPartners reboot. The same people tied to GSPartners’ parent company, Gold Standard Corporation (GSB), are running DAO1 behind the scenes.

Last November DAO1 held what is believed to be its first corporate webinar for investors.

GSB executive Bruce Innes Wylde Hughes opened the webinar.

Hughes is a South African national and works as GSB’s Corporate Trainer. Hughes is also a named Respondent in standing regulatory enforcement actions from Texas, California and New Hampshire.

For what should be obvious reasons, Hughes pleaded with investors to keep the DAO1 webinar private.

We want to remind you not to edit, record or share this outside of the context it is created for. This is obviously a lawfully punishable offence.

Hughes doesn’t cite any specific laws because, well… there aren’t any.

Confirming DAO1 is just GSPartners rebooted, Hughes directs investors to direct any questions they had about DAO1 to a GSPro domain hosted email address.

In a nutshell, DAO1 is part of what Hughes refers to as “GSPro Plus”. To better understand where we’re at, here’s a list of GSPartners reboots:

  • GSPartners – original fraudulent investment scheme, launched in 2021 and underwent multiple investment model reboots till it settled on “metaportfolio certificates” in 2023
  • Swiss Valorem Bank – launched in mid 2023 after Canadian GSPartners fraud warnings, abandoned within a few months in favor of returning to GSPartners branding
  • GSPro – second GSPartners reboot after an avalanche of US regulatory fraud warnings and enforcement orders issued in late 2023, DOA by the end of Q1, 2024
  • Billionico – third GSPartners reboot launched in March 2024, effectively DOA after Texas issued Billionico fraud order in April 2024
  • Auratus – fourth GSPartners reboot launched in May 2024, effectively DOA outside of a small group of promoters in Australia whose downlines carried over from GSPartners

Auratus has gone through three investment scheme iterations since launch.

First there was a “gold vault” investment scheme, then “gold points” scheme tied to Zai Cards, and finally a “storage boxes” scheme.

Now we have GSPro+, attached to which is DAO1.

Hughes doesn’t get into specifics but part of GSPro+ is selling “GSPay+ cards” for up to 7500 EUR.

GSPro+ also sells “modules” costing thousands of euros:

Through a “universal module”, GSPro+ investors are provided access to GSPartners’ collapsed metaportfolio certificates investment scheme.

US regulators have cited GSPartners’ metaportfolio certificates as a “fraudulent investment scheme” that took in over a billion dollars.

In September 2024 GSB and owner Josip Heit (right) entered into a settlement with North American regulators.

As per a September 9th executed term sheet, GSB and Heit agreed to cease and desist

offering, selling, or renewing any security in the Settling Jurisdictions without first complying with all legal requirements or exemptions for offers or sales of securities set forth in statutes, regulations, caselaw, or other sources enacted by, adopted by, or in full force and effect in the Settling Jurisdictions.

Providing consumers access to GSPartners’ metaportfolio certificates investment scheme through GSPro+ would appear to violate this agreement.

After revealing GSPartners’ metaportfolio certificates were still being pitched to consumers, Hughes brought on GSB executive Dirc Zahlmann.

Zahlmann is a GSB executive and former GSPartners CEO. Zahlmann is also a named Respondent in standing regulatory enforcement actions from Texas, California and New Hampshire.

Hughes introduces Zahlmann and DAO1 as “the next iteration of where this community can move and grow into”.

In Zahlmann’s own words, he “created” DAO1 as

the next level that we are working on … welcome to DAO1.

We already showed you, so very soon we will introduce it to you and then you can be part of it and access everything that you have, everything that was in the past times ten.

Zahlmann presents DAO1 as an “autonomous” entity that members have control of.

Everyone decides for the whole organization. It’s a clear organizational background, no one is involved in [making] executive decisions anymore.

The most important thing is the DAO system gives you the opportunity to control what’s happening with all the other members together.

So there’s no one involved anymore, like us. There’s no one involved anymore to tell you, “OK we have to go this, we have to go this way, this way.

This is what you decide altogether as members of the DAO system.

This is a common ruse used by scammers who set up DAOs. What they don’t tell you is decisions are made via vote, and typically creators of a DAO hold the most votes – usually by a large margin.

Like Hughes, Zahlmann confirms DAO1 is a GSPartners reboot.

This is the next evolvement of GSPartners, GSPro, GSPro+.

Here you can see all of your assets and everything you have done in this organization, with the organization together. So this is the next level.

The idea this time around is to avoid regulators by pretending GSPro+ and DAO1 aren’t being run by Josip Heit, Dirc Zahlmann and the rest of the still active GSB executive team.

DAO systems are already legally acknowledged through different kinds of countries, so that you can have the safe haven, let me say it that way, from the regulatory side.

It should be noted that no country with a regulated financial system makes an exemption for DAOs, or the people running them, for committing securities and/or commodities fraud.

The third speaker on the webinar was Josip Heit.

In contrast to Hughes and Zahlmann, Heit read off a PR corpo-speak script.

We introduced the GSProPloos [sic], a platform that embodies our commitment to driving progress and empowering your community.

And so on.

Addressing the elephant in the room, Heit reads a brief statement regarding allegations of fraud in the US.

We talked about our remarkable achievement we were made, including a significant milestone. The resolution of regulatory matter involving more than twenty-two US states and Canada.

I have to point out that the North American GSPartners settlement hasn’t been “resolved” as Heit claims. Complete execution of the settlement remains pending at time of publication.

Heit goes on to falsely claim the settlement “exonerates” him from “any allegations of fraud”.

After refunding investors, in the second part of the settlement

GSB Group and Mr. Heit will consent to the entry of an enforcement order that concludes they illegally offered and/or sold securities that were not registered pursuant to state law.

Additionally it should be noted that, as per Joe Rotunda, Director of Enforcement at the Texas State Securities Board, Hughes and Zahlmann are found to have “engaged in securities fraud [and] threatened immediate and irreparable harm to the public” through GSB and GSPartners.

The regulatory findings against Hughes and Zahlmann are “final and not subject to appeal”.

As with Hughes and Zahlmann, Heit confirms DAO1 is a continuation of GSPartners and the associated GSB schemes.

Today I am proud to announce that with DAO1 we are fully bringing the vision to life.

For our community, they can swap from GSPro+ to DAO free of charge and access multiple industries and their products.

By decentralizing [???] and decision making, DAO allows business to operate with total autonomy. Ensuring that assets are protected from the vulnerables [sic] of traditional centralized systems.

Having already been convicted and sentenced to prison for financial fraud in Luxembourg, why “protecting assets” is so important to Heit should be obvious.

With DAO1 we will build a platform that aligns perfectly with our mission.

This innovation gives us the competitive edge to dominate the market for the next decade. This is just the beginning.

Having only just broken it down myself last week, it is unclear whether US regulators are aware of DAO1.

Also unclear is what effect Heit, pressing forward with violating securities and commodities laws through GSPro+ and DAO1, might have on finalizing execution of the agreed GSB settlement.

Outside of North America GSB, GSPartners and Heit received regulatory fraud warnings from Canada, Australia, South Africa, the Bahamas and New Zealand.

Any country with a regulated financial market has similar securities and commodities laws to the US.

At time of publication neither Heit, GSPro+, DAO1, GSB or any of its executives are registered to offer securities or operate as a commodities broker in any jurisdiction.

This is and remains a regulatory compliance issue, as DAO1’s business model is pitching consumers on passive returns, purportedly derived through automated trading.

Pending any further updates, we’ll keep you posted.