The Securities and Exchange Commission (SEC) of the US has frozen the assets of the Meta 1 Coin and has charged the firms authorities for a scam of $9 million funds raised through a token sale.
The scammers which were backed by a former senator had promised the investors to return up to 224,923% of their investments without ever issuing actual tokens.
Earlier this month, the District Court of Austin, Texas had frozen the assets of the entities who allegedly received funds from the Meta 1 Coin initial Coin Offering (ICO).
In the last couple of years, the SEC has closely been monitoring the ICO projects and taking stern action against the fraudsters and scammer companies in the crypto industry. Meta1 Coin came under the vigilance of the SEC around the month of March 2020.
SEC’s Charges against the Meta Coin1
In a charge sheet filed against Meta Coin1, the SEC has mentioned that the Meta Coin 1 has raised more than $9 million in an unregistered securities offering that was nothing but a vehicle to steal investors’ money.
The SEC filing mentions that the Meta 1 Coin is backed by $1 billion worth of art collection and/or $2 billion in gold. In reality, the coin is backed by nothing. The Sec further reads that $215,000 of the funds raised in the ICO was spent on a Ferrari.
However, Meta coin 1 executive trustee Robert Dunlap and Schmidt have denied all the charges against them. When SEC had filed the initial complaint against them,
“I am looking forward to dismantling the SEC as they are committing crimes against humanity in the attempted enforcement of financial slavery.” He also claimed that they have increased collateral backing the Meta Coin. He further added, “Meta 1’s victory and service for humanity will be everlasting.”
The SEC wants to penalize the scammers heavily and the investors’ funds to be returned by the Meta Coin executives. It also wants to ban Schmidt, Dunlap, and the rest of the involved team of Meta 1 Coin from selling, purchasing, or issuing securities.