US DOJ Charges Texas Man For Meta-1 Coin Scam
Highlights
- The Department of Justice has charged a Texas man in the Meta-1 Coin scam.
- Reports show that over $10 million was wiped out from investors.
- Prosecutors have slammed the defendant with four counts.
The United States Department of Justice (DOJ) has charged a Texas man for orchestrating the Meta-1 Coin scam that led to users losing over $10 million.
A recent press release by the Department disclosed that Robert Dunlap was indicted in Chicago on counts of mail fraud as the case unraveled. Dunlap was arrested in Virginia before being ordered by the District Court for the Eastern District of Virginia to be transferred to Chicago.
Charged with four counts of mail fraud, he faces a risk of 20 years per charge according to the DOJ. The Department added that if convicted, the court must impose reasonable sentences under federal statutes and sentencing guidelines.
How Meta-1 Coin Scam Unfolded
According to reports, Dunlap worked in partnership with others to sell an asset called Meta-1 Coin through the Meta-1 Coin Trust from 2018-2023. Prosecutors allege that false and misleading statements were made by promoters of the coin.
The indictment announced by Acting United States Attorney for the Northern District of Illinois Morris Pasqual made multiple revelations about the development of the pending case.
First of all, investors were told that they could withdraw their assets through fiat, the US Dollar, or exchange it with other cryptocurrencies. The promoters also made claims that the Meta-1 coin was backed as high as $44 billion in gold and art, a move that sought to gain investor confidence in the asset.
Furthermore, he claimed to own an accounting firm that audited the value of the gold while the art collection was said to include works of Salvador Dali, Pablo Picasso, and Vincent Van Gogh as well as other artists. The defendant also created false documents to buttress the gold and art used to back the asset.
Platform’s Exchange Aided Plot
The Meta-1 Coin exchange was used to inflate the price of the asset making investors believe the growth of the asset. Aside from the price, the trading volume of the coin was influenced by the exchange.
Recently, the United States DOJ and other authorities have ramped up efforts to curb cryptocurrency scam cases in the country and have instituted cases against many fraudulent assets in the market. Crypto users also bemoan the rate of fraud and the impact on the market.
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