GSPartners collapses, GSPro reboot after fraud warnings
GSPartners has collapsed.
In an attempt to get ahead of multiple regulatory fraud warnings from the US, Canada, South Africa and Australia, the Ponzi scheme has rebranded as GSPro.
GSPartners’ website and that of Swiss Valorem Bank were disabled approximately 24 hours ago. This happened without prior warning or communication to GSPartners investors.
If we look at WHOIS records for both domains, we see GSPartners’ DNS entries were last modified on December 15th. Swiss Valorem Bank’s on December 4th.
GSPartners’ and Swiss Valorem Bank’s websites being disabled on December 15th also coincided with a KYC deadline, implemented a few weeks ago to cut off US investors from their funds.
What remains unclear is whether disabling of the GSPartners and Swiss Valorem Bank domain was voluntary.
Certainly the lack of communication beforehand suggests something happened behind the scenes at the registrar level.
GSPartners’ and Swiss Valorem Bank’s website domains were registered with GoDaddy and 101Domain respectively. Both companies are based out of the US (101Domain also has a corporate office in Ireland).
GSPro is operating from the domain “gspro.network”, registered through TLD Registrar Solutions on December 4th, 2023.
TLD Registrar Solutions is based out of the UK, a jurisdiction that hasn’t issued fraud warnings against GSPartners.
A visit to GSPro reveals an announcement informing investors “GSPartners platform platform is not accessible to its registered members anymore!”
GSPartners, along with related entities and individuals (collectively, “The Companies”), have been served with cease-and-desist orders and other legal process by the U.S. states of Alabama, Arizona, Arkansas, California, Florida, Kentucky, New Hampshire, Texas, Washington, and Wisconsin. The Companies are committed to our clients and are reviewing the filings.
At this time, however, The Companies are not doing business in Alabama, Arizona, Arkansas, California, Florida, Kentucky, New Hampshire, Texas, Washington, and Wisconsin.
Nor are we offering any services to, engaging in any transactions with, or accepting any Funds from residents of those U.S. states.
Taken at face value, it seems GSPartners investors in these states have lost access to invested funds.
Provided they’ve supplied personal credentials to organized crime interests in eastern Europe, the rest of GSPartners’ investors can purportedly carry on through GSPro.
In order to make sure all KYCed customers or members registered with GSPartners Platform are able to access their deposits or products held within GSPartners platfrom are pleased to go to GSPRO.network “platform” with their original credentials in able to allocate their deposits, products, withdrawals. [sic]
Taken at face value the above sentence makes no sense. What I think GSPartners is trying to say is that it’s business as usual through GSPro.
Well sort of. Now the GSPartners Ponzi scheme is hidden behind an eDuCaTiOn PlAtFoRm.
Established in 2023, GSPRO operates as a dynamic education and digital marketing platform.
This is of course pseudo-compliance. GSPartners has been running a ~5% a week Ponzi scheme for the better part of a year and a half.
Nobody signed up for education, that in any event didn’t exist until today anyway.
Still, that’s the new ruse GSPartners is going with;
GSPro is not a financial services provider or bank, and the entity does not provide any account opening possibilities.
Requests for account openings will be rejected and/or not responded to.
Tellingly, there’s no mention of GSPartners’ 5% a week MetaCertificates Ponzi scheme on its website. There’s also no mention of owner Josip Heit or any of the company’s other executives.
With US regulators naming all of GSPartners’ previous shell companies (triggering financial blacklists), GSPro has been set up through new shell companies.
GSPRO, as mentioned at gspro.network (domain/platform), is a trade name of GS Digital Partners LLC incorporated in the Republic of Georgia with Business Identification Number 405472180.
If we punch that BIN into Georgia’s CompanyInfo website, we get information on “Ltd Jies Dijital Partners”.
Luka Beruashvili is listed as GS Digital Partners LLC’s director. We have not seen this name in connection with GSPartners before.
The provided GS Digital Partners LLC email address corresponds with the Georgian law firm Patronus Legal.
GSPro’s website footer states “GSPro is not a financial services provider”.
it is entitled to provide various services to members outside the Republic of Georgia according to the Free Zone Financial License and Annex issued by the Hualing Free Industrial Zone with License Number: 0110/473.
These services include Financial Services and Consulting, Cryptocurrency and Blockchain-related activities, e-wallet and Payment Processing Services, Professional Trustee Services to store and safeguard third party funds, Electronic Money Issuing, and Automated Signal Trading (including high-frequency trading in FX and cryptocurrencies in real time) engaging with cryptocurrency services, included but not limited to operating cryptocurrency exchanges, cryptocurrency trading, and operating of cryptocurrency wallet and storage services for digital assets.
I guess when you’ve been covering up lies with more lies for this long, consistency is difficult.
Oh and, not willing to take any chances with local authorities, GSPro doesn’t appear available to local Georgian residents (go figure).
GSPro’s “General Terms and Conditions” reveals another Georgian shell company, GSB Digital Partners LLC.
GSPRO … is a trade name of GSB Digital Partners LLC incorporated in the Republic of Georgia with Business Identification Number 405472180.
This is the same BIN provided for GS Digital Partners LLC. Again, consistency.
To the best of my knowledge GSPartners corporate, namely owner Josip Heit, CEO Dirk Zahlmann and Corporate Trainer Bruce Hughes, have not publicly addressed the GSPro rebranding.
Perhaps Hughes is still rehearsing his hand gestures.
In any event, it’s clear Heit and the gang have engaged lawyers in their bid to evade US securities law (Canada, South Africa and Australia seem to be ignored).
Looking forward, it’s unclear how much longer GSPartners will be able to keep its ~5% a week MetaCertificates Ponzi scheme afloat.
For November 2023, SimilarWeb tracked a 20% reduction in GSPartners website traffic. Outside of Canada and South Africa, traffic dropped as much as 51% in some countries.
Of course for anyone familiar with a Ponzi scheme slow-collapsing, the warning signs are already there. Withdrawal problems, regulatory fraud warnings, a KYC deadline, company rebranding – these are all typical of a Ponzi scheme circling the drain.
And when that does inevitably happen…
GSPro does not take any liability for any trading losses, financial risks, or, in general, any other investment risks that may occur by using the GSPro software and API solutions.
Disputes are subject to the laws of GSPRO’s registered office. GSPRO does not participate in dispute resolution proceedings.
On the regulatory front nothing has changed. GSPartners still operates illegally in every country it solicits investment in.
Rebranding GSPartners as GSPro and using different shell companies in different jurisdictions doesn’t negate existing fraud warnings.
Pending any further updates on GSPartners’ GSPro rebranding, we’ll keep you posted.
Footnote: For reference, here are all of GSPartners’ regulatory fraud warnings so far:
- Texas described GSPartners as “various fraudulent investment schemes that are threatening immediate and irreparable harm”
- Washington described GSPartners’ MLM business as “fraudulent activity”
- Alabama claims GSPartners was “evading Alabama laws and making guarantees that are unrealistic”
- California described GSPartners as a “fraudulent crypto investment scheme”
- Kentucky asserted GSPartners “acted as an unregistered issuer of unregistered securities through its publicly available websites”
- Wisconsin described GSPartners as a “global fraud scheme”
- Arkansas claimed GSPartners is “perpetrating numerous fraudulent investment schemes that are threatening immediate and irreparable harm to investors”
- New Hampshire accused GSPartners of “fraud and deception”
- Arizona determined GSPartners’ threat to “public welfare requires immediate action” and
- Florida’s undercover investigation into GSPartners revealed “unlawful activities“
- Mississippi described GSPartners’ Ponzi scheme as the “offering and selling fraudulent (of) certificates tied to digital assets”
- Quebec issued 52 GSPartners website securities fraud warnings on March 9th
- Alberta issued three GSPartners securities fraud warnings (G999, GSTrade and GSPartners) on May 19th
- British Columbia issued a GSPartners & Swiss Valorem Bank securities fraud warning on May 30th
- Saskatchewan issued a GSPartners securities fraud warning on June 1st
- Ontario issued a GSPartners and Swiss Valorem Bank securities fraud warning on July 25th
- Australia issued a GSPartners securities fraud warning on November 15th
- South Africa issued a GSPartners securities fraud warning on November 22nd
Update 20th December 2023 – GSPro has announced it is terminating all US GSPartners investor accounts.