on the crypto
A federal court has frozen all funds raised in a $ 9 million token sale that the Securities and Exchange Commission (SEC) claims is fraudulent.
The action of the SEC and the district court
In a report released earlier this month, the United States District Court, meeting in Austin, Texas, froze the assets of individuals and entities believed to have received funds from the initial coin offering Meta 1 (ICO). .
The court agreed with the SEC that the "Warner defendants" - Wanda Ironheart Traversie-Warner ("Traversie"), Alfred Dewitt Warner Jr. ("Warner") and Ironheart Trust ("Ironheart") - would try to "disperse" , hide or transfer goods ".
The ruling, dated May 14, includes all legal currencies and cryptocurrencies related to the sale of Meta 1 tokens. Warner's defendants also had the task of providing the SEC with a list of all the assets worth more than $ 1.000 in their possession.
A long and bizarre story for Meta 1
This is the latest turning point in an increasingly bizarre story. Launched in 2018 by David Schmidt, a former Republican state senator in Washington State, Meta 1 Coin claimed to have a digital token supported by an art collection worth more than $ 1 billion and gold for a quotation $ 2 billion, all of which are regularly audited by KPMG.
The project also promised investors that they would make 225.000% returns with a risk-free investment that would never lose its value. The SEC filed a lawsuit against Meta 1 in late March.
In a complaint filed on May 14, the regulator said the defendants raised more than $ 9 million in an unregistered offer of securities that was "nothing more than a vehicle to steal investors' money."
“The Defendants claimed that the Coin [Meta 1 Coin] is backed by an art collection of $ 1 billion and / or $ 2 billion in gold. In reality, money is not supported by anything, "reads the complaint. The SEC claims that $ 215.000 of the funds raised in the ICO were spent on a Ferrari. Meta 1 Coin has denied any wrongdoing.
The "holy war" of Meta 1 against the SEC
Dunlap recently contacted the media describing the case as unworthy and libelous, claiming that Meta 1 Coin was waging a "holy war" against the SEC and the federal government in order to provide financial freedom to humanity.
"I am looking forward to dismantling the SEC because they are committing crimes against humanity in an attempt to enforce financial slavery," he said. The SEC wants the funds to be returned to investors and the defendants to be hit with civil penalties. The regulator calls for a lifetime ban on Schmidt, Dunlap and the rest of the Meta 1 Coin team to buy, sell or issue securities.
