More than 150 people investing in cryptocurrencies called Meta 1 Coin in the USA are reportedly defrauded with 224 thousand profit valleys, and fraudsters reportedly spent their money on luxury cars.
The U.S. Securities and Exchanges Commission (SEC) reported in a press release Friday that the assets of three people, including an ex-Washington state senator, were involved in a $ 4.3 million crypto fraud.
According to the statement made by the SEC , these people convinced more than 150 people in the USA and worldwide to invest in the crypto money they call “Meta 1 Coin” by promising 224 thousand profit.
The institution, which also disclosed the identity of individuals, stated that the senator in question was David Schmidt, and the others were Robert Dunlap and Nicole Bowdler living in Florida. It was stated that fraudsters spent the money they got from the victims on luxury cars, including a $ 215,000 Ferrari.
The three are allegedly told investors that crypto money is backed by a $ 1 billion art collection or $ 2 billion in gold. Allegedly, investors never received any cryptocurrencies as well. Moreover, it was noted that investors were told that Meta 1 Coin was risk free and would never lose its value.
The Meta 1 Coin Trust company and three other names are accused of violating federal securities law provisions related to security registration and anti-fraud.