SEC to Accuse Ex Senator in Crypto Scam

Washington State Senator Dave Schmidt was involved in Meta 1 Coin, which assets were frozen due to fraud suspension
23 March 2020   913

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.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   965

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.