The US Securities and Exchange Commission (SEC) has frozen the assets of the crypto project Meta 1 Coin. According to the regulator, one of the project's organizers is David Schmidt, a former Washington State Senator.
The SEC has reported that Schmidt, together with Florida residents Robert Dunlap and Nicole Bowdler, organized the sale of Meta 1 Coin, a coin they claim was backed by both a $1B art collection and $2B in gold.
They promised investors a 224% return and claimed it was a risk-free asset. Since April 2018, they managed to raise around $4.3M from more than 150 investors.
According to the SEC, Meta 1 Coin was not backed by any asset, while the coins were never distributed among investors.
Some of the investors' funds were reportedly used to buy luxury cars, including a $215,000 Ferrari.
Now the SEC has accused the organizers of the project of violating the anti-fraud law and organizing a sale of unregistered securities.
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