GSPro terminates all US GSPartners investor accounts
GSPro has announced it is terminating all GSPartners investor accounts.
The new update went live following unscheduled website maintenance sometime yesterday.
Earlier this week US investors were able to access GSPro’s website. The “alert” on the site advised that GSPartners was only terminating accounts in the states it had been served cease and desist orders in.
GSPartners, along with related entities and individuals (collectively, “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 funds from residents of those U.S. states.
BehindMLM marked this announcement as the beginning of GSPartners’ collapse.
Following maintenance on GSPro’s website yesterday, US traffic to GSPro’s website now appears to be geo-blocked.
Visitors to GSPro’s website from the US are shown a new “alert” message:
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.
The Companies have ceased doing business in the United States.
We are not offering any services to, engaging in any transactions with, or accepting any funds from U.S. customers. No new U.S. customers will be permitted to register.
In less than three days GSPro has gone from avoiding state regulators to pulling out of the US entirely. This isn’t surprising, seeing as US state securities law isn’t any different to federal US securities law.
From a business operations standpoint, GSPro pulling GSPartners out of the US is a disaster. Carrying over from Karatbars International, the overwhelming majority of GSPartners investors are US residents.
In what appears to be an attempt to stave off a flood of complaints to regulators, namely the SEC and CFTC, GSPro is touting refunds to US GSPartners investors.
Any existing U.S. customer accounts are in the process of being closed, as are all existing accounts without proper “Know Your Customer” documentation on file.
Withdrawals or refunds will be provided upon request to eligible U.S. customers whose accounts have been closed.
What makes a US GSPartners investor “eligible” for a refund isn’t disclosed.
It should further be noted that on the GSPartners corporate call held on Monday, there was no indication to US investors that their accounts would be closed.