As of March 13th, 1,501 victims had filed claims against GSPartners, alleging financial harm from its cryptocurrency investment schemes. Georgia alone accounted for 121 of those claims, according to Secretary of State Brad Raffensperger.

"Georgia's winning right now," an AlixPartners administrator stated, referring to the claims process. This outcome reflects GSPartners' strong ties to the state. Michael Lynn "El" Dalcoe, one of the company's leading promoters, maintained a base in Georgia. The Georgia Commissioner of Securities levied a joint $500,000 fine in January 2024 against Dalcoe, fellow promoter Eric Ture Muhammad, GSPartners, and owner Josip Heit.

The total dollar amount behind these 1,501 claims remains undisclosed. However, North American regulators estimate GSPartners generated over one billion dollars worldwide, a figure derived from the company's own marketing materials. GSPartners advertised various "fraudulent investment schemes" centered on cryptocurrency, often promoting high-yield returns that resembled a Ponzi structure, promising investors potential gains of up to $700,000.

Victims initially had until May 22nd to file claims with the North American jurisdictions involved in the settlement agreement. But Texas withdrew from the settlement earlier this month.

Texas Securities Commissioner Travis Iles announced the "settlement is terminated" earlier this week. The state cited "settlement contract violations and general fraud allegations" as its reasons. A hearing for Texas's separate GSPartners fraud enforcement action is scheduled for April 14th at the State Office of Administrative Hearings in Austin. That action names owner Josip Heit and several associates, including Michael Lynn "El" Dalcoe.

Texas regulators found a significant issue with GSB, GSPartners' parent company. GSB appeared to have altered investor transaction data. The Texas State Security Board established an undercover GSPartners account. This account made no withdrawals. Yet, data provided by GSB falsely claimed the account had "withdrew assets valued at $690.69."

Based on this fabricated withdrawal, GSB deemed the undercover account ineligible for the victim claims process. If Texas received manipulated data, other participating jurisdictions likely faced similar issues. So far, no other state or province has publicly commented on GSB's alleged violation of the settlement terms.

The April 14th hearing will determine the next steps for Texas's enforcement against GSPartners and its principals. For now, the larger multi-jurisdictional GSB settlement remains in limbo, its future uncertain due to the alleged data manipulation. Individuals seeking recovery resources or information on investment fraud can contact the North American Securities Administrators Association (NASAA) at nasaa.org for guidance on investor protection.