Two Florida-based investment firms, GSW Partners and KGS Partners, have been accused of running a series of fraudulent schemes involving cryptocurrencies. According to a report from The Wall Street Journal, the alleged schemes, which the Securities and Exchange Commission (SEC) is calling “Metaverse Ponzi schemes,” involve a variety of cryptocurrencies including Bitcoin, Ethereum, and Litecoin. The report alleges that the two firms operated a multi-level marketing structure, where investors were encouraged to recruit other investors in exchange for increased financial returns. According to the SEC, these schemes have raised over $14 million from at least 100 investors. GSW Partners and KGS Partners are also accused of misappropriating $11 million of those funds.
GS Partners Accused of Defrauding Crypto Investors in Metaverse Schemes
