Texas Man Who Orchestrated $20 Million Cryptocurrency Scam Sentenced to 23 Years in Prison

CHICAGO - A Texas man who orchestrated a cryptocurrency scam that bilked nearly 1,000 investors out of more than $20 million has been sentenced to 23 years in federal prison.

From 2018 to 2023, ROBERT DUNLAP claimed to operate a cryptocurrency business that sold a purported digital asset called "Meta-1 Coin" through a "Meta-1 Coin Trust." Dunlap made numerous false and misleading statements to potential and actual investors, including claims that the Meta-1 Coin was backed by as much as $1 billion in art and $44 billion in gold. Dunlap falsely claimed that an accounting firm had audited the gold and certified its value. The purported art collection was alleged to have included works by Pablo Picasso, Salvador Dali, Vincent Van Gogh, and other acclaimed artists. Dunlap created bogus legal documents to conceal the fact that he did not actually possess the gold or art.

Dunlap's fraud scheme caused nearly 1,000 investors to lose more than $20 million. Many of the victim investors lost all of their savings.

A federal jury in the Northern District of Illinois last year convicted Dunlap, 55, of Houston, Texas, on mail fraud charges. On Tuesday, U.S. District Judge LaShonda A. Hunt sentenced Dunlap to 23 years in federal prison and ordered him to pay restitution to his victims.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Adam Jobes, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. Valuable assistance was provided by the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the Eastern District of Virginia.

"Defendant lied to investors for years telling them that he had created a safe investment for them," Assistant U.S. Attorneys Jared Hasten and Paige Nutini argued in the government's sentencing memorandum. "Over the years, defendant was unrepentant and his lies became bigger. 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."

"Robert Dunlap didn't just take money-he took years of hard work, trust, and financial security from his victims," said IRS-CI SAC Jobes. "He used lies and deception to pull in millions, leaving some investors with nothing. Crimes like this don't just hit bank accounts-they upend lives. This 23-year sentence reflects the depth of that harm and sends a clear warning: Those who exploit others for personal gain will be found, and they will face serious consequences."