Federal prosecutors have sentenced Robert Dunlap to 23 years in prison in connection with a crypto scam linked to Meta-1 Coin. The U.S. Department of Justice said the fraud caused more than $20 million in losses and affected nearly 1,000 investors.
Court records indicate that Dunlap, a 55-year-old Houston man, ran the scheme from 2018 to 2023. During that time, he promoted Meta-1 Coin as a legitimate digital asset. Prosecutors said the scheme was based on false allegations and false endorsements.
Crypto Scam Behind Meta-1 Coin
At the center of the affair was an entity called Meta-1 Coin Trust. Through this platform, Dunlap told investors they were buying a real crypto company. The authorities said the operation did not benefit from any real financial support.
Investigators said Dunlap claimed the piece was financed with artwork worth up to $1 billion. He also said that around $44 billion in gold would be behind the project. Prosecutors told the court those statements were false.
Another part of the sales pitch supposedly involved external verification. Dunlap said an accounting firm audited the gold reserves and confirmed their value. According to prosecutors, no such evidence existed.
Authorities also reported claims about a personal art collection. Dunlap told investors the collection included works by Pablo Picasso, Vincent Van Gogh and Salvador Dali. Prosecutors said the names were used to give the project an image of value and legitimacy.
Years of false statements end in federal prison sentence
To bolster the story, he created fake legal papers and other documents. These materials were designed to appear authentic. Prosecutors said they were used to support allegations with no factual basis.
For several years, investors accepted these representations and poured money into the project. Some victims invested a lifetime after learning the project offered strong future returns. Instead, authorities said, the funds were paid into a fraudulent system.
This week, U.S. District Judge LaShonda A. Hunt imposed the prison sentence. The court also ordered compensation for victims injured by the operation. The ruling ends a case that prosecutors described as long and deliberate.
However, officials said the case reflected a broader trend in digital asset fraud. False statements, false audits and misleading documents have all been used to attract money. In that case, prosecutors said none of the promised support could be verified.
The conviction comes as other cases of crypto fraud continue to emerge. Earlier this year, a dual national fugitive was sentenced to 20 years in prison in absentia for his role in a $73 million international pig butchery crypto investment scam.
Separate coercive measures have also extended across borders. According to authorities, the United States, Britain and Canada have launched a joint effort to combat large-scale cryptocurrency theft schemes. Estimates from this operation put the stolen crypto assets at around $45 million, with $12 million frozen.
Related: Crypto Scam Complaints Reach 181,565 as US Losses Hit $11.366 Billion