A Texas man convicted of helping run a cryptocurrency scam that defrauded nearly 1,000 investors of $20 million has been sentenced to 23 years in prison by a U.S. judge.
U.S. District Judge LaShonda Hunt handed down the sentence to Robert Dunlap, who acted as a trustee for the fraudulent Meta-1 Coin project, and also ordered him to pay restitution to victims, according to the Illinois U.S. Attorney’s Office.
Prosecutors Jared Hasten and Paige Nutini said in a sentencing memo that Dunlap was “unrepentant” and that his deception escalated over time.
“Would-be criminals planning similar schemes should understand that such conduct will bring serious consequences, including the loss of liberty for an extended period,” they added.
Regulators are intensifying efforts to crack down on crypto fraud. In March, a suspect accused of hacking the now-defunct DeFi platform Uranium Finance was charged with computer fraud and money laundering.
Token falsely claimed to be backed by $44B in assets
A federal jury in the Northern District of Illinois convicted Robert Dunlap in November on two counts of mail fraud, each carrying a potential sentence of up to 20 years.
Prosecutors said Dunlap conspired with others between 2018 and 2023 to promote and sell Meta-1 Coin through the Meta-1 Coin Trust, making false claims that the token was backed by a $1 billion art collection—including works by Pablo Picasso and Vincent van Gogh—and $44 billion in gold.
Authorities also said Dunlap and his associates used automated trading bots to manipulate the token’s price and volume on the Meta Exchange, a platform he created.
In March 2020, the U.S. Securities and Exchange Commission (SEC) obtained an asset freeze and emergency orders to halt the scheme, targeting Dunlap, alleged accomplice Nicole Bowdler, and former Washington state Senator David Schmidt.
Investigators said the group falsely promised investors that Meta-1 Coin was risk-free and could deliver returns of up to 224,923%. In reality, the tokens were never distributed, and investor funds were diverted for personal use, including the purchase of luxury vehicles such as a Ferrari.
