The British Columbia Securities Commission (BCSC) extended a temporary order against GSPartners and its parent company, GSB Gold Standard Corporation, on November 30, 2023. The order, initially issued November 16, 2023, bars the promotion and sale of GSPartners' "MetaCertificates" and "blockfolios," which the BCSC identifies as unregistered securities within British Columbia.

The BCSC cited several violations of British Columbia's Securities Act in its initial order. These included the illegal distribution of securities, meaning the offerings were sold without proper registration or prospectus. The Commission also identified illegal trading of securities, as neither GSPartners nor its promoters were registered to trade investment products in the province. Further charges involved prohibited representations, where promoters made misleading or unsubstantiated claims, and allegations of fraud, indicating intentional deception of investors. The order specifically named individual promoters Haidy Nitsa Nakos, Tanya Sue Cloete, and James Bruce Gardiner, alongside the corporate entities GSPartners and GSB Gold Standard Corporation.

A hearing took place on November 29, 2023, to assess whether the temporary order should be extended. This proceeding aimed to allow all parties to present their cases. However, despite receiving formal notification of the proceedings, GSPartners, GSB Gold Standard Corporation, and the named promoters, Nakos, Cloete, and Gardiner, did not appear or submit any arguments. Their absence meant the BCSC based its decision solely on the evidence presented by its Executive Director. This evidence demonstrated "prima facie evidence" of fraud, a legal standard suggesting sufficient evidence exists to prove the case unless disproved. Consequently, the Commission extended the temporary order for up to one year, ensuring continued protection for the public against these alleged illicit activities.

The BCSC released its detailed reasoning for the extension on April 4. This document revealed significant insights into the Commission's ongoing investigation into GSPartners, GSB Gold Standard Corporation, and its owner, Josip Heit. The Executive Director submitted extensive evidence, compiled from three affidavits provided by a Commission intelligence analyst. These affidavits formed the core of the BCSC's case against the operators and promoters.

The submitted materials included lengthy slide decks used in promotional presentations. The analyst's report also referenced numerous videos and photographs, collected from public platforms such as YouTube, Facebook, and Instagram pages. These digital artifacts documented presentations and explicit representations made by promoters of the MetaCertificates and "blockfolios" directly to investors and prospective investors. The BCSC noted that these materials frequently promised high returns and low risk, hallmarks of problematic investment schemes.

Promoters Tanya Sue Cloete and James Bruce Gardiner operated a group called "Team Olympus" on Facebook, actively recruiting new investors. This group maintained its own YouTube channel, where they published promotional content designed to attract and educate potential participants. For instance, in a March 2023 video titled "Top 5 Most Asked Questions on GSPartners," Cloete explicitly claimed that investors could achieve a 4.15% weekly return through compounding. Such claims are highly unusual and typically unsustainable in legitimate investment markets, raising immediate red flags for regulators.

Gardiner further asserted that funds loaded onto these digital certificates were actively traded by a specialized group known as "SkyGround traders." He promised quarterly revenues of up to 18% on the invested amount. The BCSC's investigation found no evidence that these SkyGround traders existed or that such consistent, high returns were genuinely generated from trading activities. Instead, the claims appeared designed to lend an air of legitimacy to what was, in effect, an unregistered and potentially fraudulent scheme.

Cloete and Gardiner also hosted a large-scale promotional event at the Pinnacle Hotel in Vancouver on April 16, 2023. A video posted by Cloete to advertise the event stated that earning passive income required only that someone "INVITE, INVITE" others to join the program. This direct encouragement of recruitment is typical of multi-level marketing (MLM) structures, which, when combined with unregistered securities, often indicate a pyramid scheme. Subsequent posts to Facebook showed both Cloete and Gardiner delivering presentations at the gathering, aimed at recruiting new participants. A later video from the pair claimed 400 people attended the Vancouver session, highlighting the scale of their recruitment efforts.

The BCSC had added GSPartners to its Investment Caution List on May 30, 2023, specifically warning the public about the unregistered offerings and the risks involved. Despite this clear regulatory warning, Cloete continued her promotional activities. In July 2023, she posted to the Team Olympus Facebook Group about a related venture called "Lydian World." Her post encouraged acquiring "Citizenships" and "NFT Passports" within this new scheme, claiming "Lydian World" had already paid out $11.5 million USDT in value. This continued promotion of similar, potentially unregistered schemes after receiving a regulatory caution indicates a persistent disregard for securities laws and investor protection. The BCSC views such actions as a continuation of problematic behavior under a new guise.

The BCSC's actions illustrate the significant risks associated with unregistered investment products. Individuals must verify any investment's legitimacy through official regulatory bodies before committing funds.