In its new piece, American news and opinion website DailyBeast reveals that an Instagram account linked the infamous Meta 1 Coin cryptocurrency scam, which was backed by former U.S. Senator David Schmidt, is still active despite being banned from doing so.
Back in March, the Securities and Exchange Commission (SEC) charged Schmidt and two other individuals involved in the sham with defrauding investors out of millions with fake cryptocurrency.
From art to gold
In 2018, Meta 1 Coin cajoled investors into participating in its initial coin offering (ICO) by promising enormous returns (up to 225,000 percent).
In order to assuage those who were concerned about the coin’s intrinsic value, the fraudsters claimed that it was backed by a $1 bln art collection. As one might have guessed, Robert Dunlap, the ‘architect’ behind the scam, never bought any pieces. Meta 1 Coin got sued and paid $25 mln to the ‘Art Collector’ whose works they attempted to appropriate.
After the artsy failure, Meta 1 Coin started claiming that its tokens were pegged to ‘vaults of gold’ that also never existed.
It also didn’t help that one of the project’s operators bought a Ferrari with his swindled money.
Not leaving Instagram
None of the 150 ICO participants got their tokens, and Meta 1 Coin inevitably appeared in the SEC’s crosshairs since most of them were from the U.S.
As mentioned above, the U.S. regulator halted the ongoing scam back in March while freezing its assets and charging its managers with fraud.
Last week, U.S. District Judge Robert Pitman issued arrest warrants for Schmidt and other bad actors behind the fraud after they failed to appear in court. He also prohibited Meta 1 Coin from posting any content on social media.