SEC continues efforts to trace flow of Meta 1 Coin investor funds

The United States Securities and Exchange Commission (SEC) has provided the Texas Western District Court with a status report on its action against crypto scam Meta 1 Coin Trust.

Let’s recall that the SEC launched this case in March 2020. The SEC’s complaint alleges that Florida residents Robert Dunlap and Nicole Bowdler marketed and sold a purported digital asset called the “Meta 1 Coin” in an unregistered securities offering, conducted through the Meta 1 Coin Trust.

The SEC has secured a Default Order imposing injunctive relief against the defendants, but the regulator is aware of ongoing activities of Meta 1 Coin.

Now, according to the latest status report filed with the Court on September 28, 2021, the SEC has issued multiple subpoenas to obtain records from banks and financial institutions and has received and scheduled those financial records to trace the flow of investor funds. From this review, the SEC has identified additional bank accounts that appear to have received investor funds and is in the process of issuing subpoenas to obtain these records.

The next phase of work to be done is to receive and schedule the additional financial records to further trace the flow of investor funds.

The SEC’s complaint charges the Meta 1 Coin Trust, Dunlap, Bowdler, and Schmidt with violating antifraud and securities registration provisions of the federal securities laws.

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