SEC Cease and Desist Alleges Scam Claiming to Return 224,923% on Investment

Australians Lost AU$6 Million in 2018 to Cryptocurrency Scams

The United States Securities and Exchange Commission (SEC) is filing against a former senator of the Washington state over an alleged cryptocurrency scam, a report from CoinDesk notes.

So far, the group has “obtained an asset freeze and other emergency relief to halt an ongoing securities fraud” regarding one David Schmidt. He allegedly worked with Nicole Bowdler and Robert Dunlap to sell a cryptocurrency called the Meta 1 Coin. This was done via an unregistered securities offering.

Apparently, the group had said their asset was risk-free, couldn’t drop in value, and would return over 224,000 percent on an investment.

However, these assets were never handed out, and allegedly the three used profits to fund their own personal ventures rather than for the project:

“The complaint alleges that some of the investor funds were used to buy luxury automobiles, including a $215,000 Ferrari.  In all, the complaint alleges the defendants raised more than $4.3 million from more than 150 investors in and outside the U.S.”

Speaking on the matter is one David Peavler, the Regional Director at the Fort Worth Regional Office of the SEC:

“As we allege, the defendants made audacious claims about the Meta 1 Coin and would say almost anything to separate investors from their money. Investors should always look skeptically at promoters who claim that their investment cannot lose value or that investors will receive massive returns.”

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.

      Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend.