A Texas man convicted in the Meta 1 Coin fraud case has been sentenced to 23 years in federal prison after authorities said the scheme took about $20 million from nearly 1,000 investors.
The sentence was handed down on Tuesday by US District Judge LaShonda Hunt, according to the US Attorney’s Office for the Northern District of Illinois.
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The defendant, Robert Dunlap, served as a trustee of the project behind the fictional token Meta 1 Coin. Prosecutors said he helped market and sell the coin through the Meta 1 Coin Trust from 2018 to 2023. They also said he made false claims about the token’s backing, value, and returns.
Judge Hunt also ordered restitution for victims. In the government’s sentencing memo, Assistant US attorneys Jared Hasten and Paige Nutini said Dunlap was “unrepentant” and that his lies grew “over the years.”
They added:
“Would-be criminals planning to engage in similar conduct need to know that such actions will be met with a serious repercussion that includes loss of one’s liberty for an extended period of time.”
Meta 1 Coin Fraud Was Sold With False Claims About Gold and Art
According to prosecutors, Meta 1 Coin was promoted as a digital asset backed by $44 billion in gold and $1 billion in artworks. Those assets, authorities said, did not exist in the way investors were told. The project allegedly used those claims to make the token appear valuable and secure.
The art collection described in the sales pitch reportedly included works by Pablo Picasso and Vincent van Gogh. At the same time, investors were told the coin was tied to massive gold reserves. Prosecutors said those statements were false and misleading.
Authorities also said investors were told the token was risk free and could generate returns of up to 224,923%. However, according to the US Securities and Exchange Commission, the coins were never distributed. Instead, the money raised from investors was used for personal spending and luxury purchases, including a Ferrari.
Robert Dunlap Convicted in Meta 1 Coin Trust Scheme
A federal jury in the Northern District of Illinois convicted Robert Dunlap in November on two counts of mail fraud. Each count carried a possible sentence of up to 20 years in federal prison. The case focused on Dunlap’s role in helping operate and promote the Meta 1 Coin Trust.
Prosecutors said Dunlap worked with others to market the token and keep the scheme running for years. The alleged co conspirators included Nicole Bowdler and former Washington state Senator David Schmidt, who were also named in earlier regulatory action tied to the project.
In March 2020, the SEC obtained an asset freeze and other emergency relief to stop Dunlap, Bowdler, and Schmidt from continuing to market and sell Meta 1 Coin. That action came while the project was still being presented as a high return crypto investment backed by gold and art.
Meta 1 Coin Price and Volume Were Allegedly Manipulated
Authorities said Robert Dunlap and others used automated trading bots to inflate the market price and trading volume of Meta 1 Coin. Prosecutors said this activity took place on the Meta Exchange, a website created by Dunlap. The alleged trading activity made the token appear more active and valuable than it really was.
That part of the case mattered because trading volume and price movement often shape investor confidence. In this case, prosecutors said the numbers shown to investors did not reflect real demand. Instead, the activity was allegedly manufactured to support the false story around the token.
The sentence lands as US authorities continue pursuing crypto related fraud cases. Cointelegraph noted that in March, a man accused of hacking the defunct DeFi platform Uranium Finance was charged with one count of computer fraud and one count of money laundering.
In the Meta 1 Coin fraud case, the court record now shows a long prison term, restitution for victims, and a project that prosecutors said was built on false claims from the start.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 17, 2026 • 🕓 Last updated: April 17, 2026
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