The US Securities and Exchange Commission (SEC) froze the assets of the cryptocurrency project Meta 1 Coin due to suspected fraud. The former Washington State Senator Dave Schmidt was involved in it, according to a press release from the agency.
The SEC claims that Schmidt, along with Florida residents Robert Dunlap and Nicole Bowdler, organized the sale of the allegedly digital currencies Meta 1 Coin, misleading investors. In particular, fraudsters claimed that the coins were backed by a collection of art worth $ 1 billion, as well as gold worth $ 2 billion.
Attackers assured investors that Meta 1 Coin is a risk-free asset and promised a return of more than 224%. Thus, since April 2018, fraudsters have attracted about $ 4.3 million from more than 150 investors in the United States and abroad.
At the same time, according to the regulator, the coin is not backed up by anything and investors have never received tokens. Attackers used some investor funds to buy luxury goods, including Ferrari for $ 215 thousand.
The SEC accused the organizers of Meta 1 Coin of violating federal fraud laws and organizing the sale of unregistered securities.