Josip Heit has failed to obtain an injunction against a Singaporean financial blog.
As alleged by Heit, the unnamed blog citing Lydian World as a Ponzi scheme was “a serious violation of his personal rights”.
The Hamburg Regional Court Heit filed in initially sided with Heit (right). Upon learning of the ruling however, the blog obtained local representation and filed an objection.
As reported by BTC Echo on January 8th, the Singaporean blog was represented by the Riemenschneider Media Law Firm.
The court accepted the objection, in which it was argued referring to Lydian World as a Ponzi scheme was “a permissible expression of opinion and not a statement of fact.”
The “Ponzi Scheme” was therefore a permissible expression of opinion and not a statement of fact. There was also a sufficient factual basis for this opinion, according to the presentation by lawyer Riemenschneider in the oral hearing.
The court expressly deviated from its previous legal opinion.
Upon failing to obtain an injunction, Heit withdrew his application.
The case is similar to legal action Heit filed against BehindMLM in the same Hamburg court. Unlike the Singaporean blog however, BehindMLM had no knowledge of proceedings until well after the fact.
Heit then took his Hamburg ruling and filed a subpoena petition in the New York Supreme Court. The petition failed on appeal, primarily due to Heit’s inability to provide supporting evidence (the appeal court rejected the reliance on the Hamburg proceedings owing to their ex-parte nature).
While we know Heit’s injunction application was filed by long-time Heit collaborators Irle Moser, when the application was filed is unclear.
If it was anytime after early 2023 however, the application was likely filed in bad faith.
In early 2023 Canadian provinces began issuing GSPartners and parent company Gold Standard Corporation (GSB) fraud warnings.
Led by the North American Securities Administrators Association, by the end of 2024 GSPartners, GSB and Heit had received over a dozen regulatory fraud warnings across North America.
- BehindMLM confirmed ongoing CFTC and SEC investigations into GSPartners and Heit on November 2nd, 2023
- the Texas State Securities Board issued a GSPartners and Josip Heit securities fraud cease and desist on November 16th, 2023
- Washington’s Department of Financial Institutions issued a GSPartners and Josip Heit fraud warning on November 16th, 2023
- the Alabama Securities Commission issued a GSPartners securities fraud cease and desist on November 16th, 2023
- California’s Department of Financial Protection and Innovation issued a GSPartners securities fraud desist and refrain order on November 16th, 2023
- Kentucky’s Department of Financial Institutions sued GSPartners and Josip Heit for securities fraud on November 16th, 2023
- Wisconsin’s Department of Financial Institutions issued a GSPartners “global fraud scheme” warning on November 16th, 2023
- New Hampshire issued a GSPartners “fraud and deception” cease and desist order on November 16th, 2023
- the Arizona Corporation Commission issued a GSPartners and Josip Heit securities fraud cease and desist order on November 16th, 2023
- Florida’s Office of Financial Regulation issued a GSPartners and Josip Heit “unlawful activities” cease and desist order on November 17th, 2023
- the Arkansas Securities Department issued a GSPartners securities fraud cease and desist order on November 22nd, 2023
- Mississippi’s Secretary of State issued a GSPartners securities fraud cease and desist order on December 6th, 2023
- Georgia’s Commissioner of Securities fined GSPartners and Josip Heit $500,000 for securities fraud violations on January 22nd, 2024
- Massachusetts’ Attorney General’s Office issued a GSPartners “crypto scam” warning in early March 2024
Specific language used by North American regulators to refer to GSB’s GSPartners investment scheme include:
- “fraud, deception and the concealment of operational information”
- “fraud, deceit, and the blockfolios”
- “fraud, deceit, and the use of internal tokens”
- “fraud and the concealment of the use of principal”
- “fraud, deception, and the market protection system”
- “fraud, deception, and the performance of prior offerings”
- “fraud, deception, and the LYS staking pools”
- “fraud and deception and G999 coin”
- “Respondents are engaging in fraud in connection with the offer for the sale of securities”
Upon consideration of the above, Heit claiming a Singaporean financial blog referring to Lydian World as a Ponzi constitutes a violation of his personal rights seems disingenuous.
Heit entered into a settlement with North American regulators in September 2024. GSB victims were initially told a claim portal would go live in early November but there has been no communication since.
Three months on the status of the reached GSB settlement, which hinges on Heit providing AlixPartners with investor details and refunding GSB victims, is unclear.
Heit meanwhile continues to defraud consumers through GSPro+ and DAO1.
