Texas Man Indicted for $10M Digital Currency Scam: Fraud in the Crypto Market

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By Ciara Perez, News Reporter | iSkyCreations - News & Media (ISC)
Published March 19th, 2024

CHICAGO – A federal indictment has been unsealed in Chicago, charging a Texas man with masterminding a sophisticated digital currency scam that allegedly defrauded investors out of over $10 million. Robert Dunlap, 52, of Houston, Texas, faces charges of mail fraud, highlighting the growing concern over fraudulent activities within the digital currency market.

Dunlap was apprehended last week in Virginia and appeared in U.S. District Court for the Eastern District of Virginia on Monday. He was ordered to be transferred in custody to Chicago, where the charges have been filed in the U.S. District Court for the Northern District of Illinois.

The indictment outlines that from 2018 to 2023, Dunlap, alongside associates, promoted and sold the so-called “Meta-1 Coin” through the “Meta-1 Coin Trust.” The scheme was bolstered by a series of false and misleading statements to lure potential and existing investors. Notably, Dunlap claimed that Meta-1 Coin was secured by assets valued at approximately $44 billion, including gold and an art collection purported to contain works by renowned artists such as Pablo Picasso, Salvador Dali, and Vincent Van Gogh.

Further allegations detail Dunlap’s efforts to manipulate the market price and trading volume of Meta-1 Coin on the "Meta Exchange," a platform he created, using automated software programs deceitfully. He also falsely assured investors that they could effortlessly convert their Meta-1 Coin into other cryptocurrencies or fiat currencies, such as the U.S. dollar, at any time.

To cover his tracks, Dunlap is accused of generating a myriad of legal, insurance, and other documents to obscure the nonexistence of the promised gold and art assets.

The charges have been brought forward by Acting United States Attorney Morris Pasqual for the Northern District of Illinois, along with key investigators from the FBI and the IRS Criminal Investigation Division in Chicago. The investigation received crucial support from the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of Virginia.

Assistant U.S. Attorney Corey B. Rubenstein is leading the government's case. In light of these allegations, the public is reminded that an indictment merely implies suspicion and does not constitute proof of guilt. Dunlap is entitled to a fair trial, during which the government bears the burden of proving his guilt beyond a reasonable doubt. Mail fraud charges carry a maximum penalty of 20 years in federal prison per count. The court is expected to consider federal statutes and advisory sentencing guidelines in determining any sentences, should a conviction occur.

View: Dunlap indictment Dunlap complaint

For Immediate Release: U.S. Attorney's Office, Northern District of Illinois

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