A Texas man got 23 years in prison for scamming nearly 1,000 investors out of $20M through a fake crypto coin backed by lies.
A Texas man is heading to federal prison for more than two decades.
Robert Dunlap, 55, of Houston, ran a crypto fraud that drained over $20 million from nearly 1,000 investors. He sold a fake digital asset called “Meta-1 Coin” from 2018 to 2023. Dunlap backed his pitch with false claims about gold reserves and famous artwork.
On Tuesday, U.S. District Judge LaShonda A. Hunt sentenced him to 23 years in federal prison.
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How Dunlap Built a Fake Crypto Investment Scheme
Dunlap operated what he called a “Meta-1 Coin Trust.” He told investors the coin had backing from up to $1 billion in fine art and $44 billion in gold.
The supposed art collection included works by Pablo Picasso, Salvador Dalí, and Vincent Van Gogh. None of it was real.
He also claimed an accounting firm had audited and certified the gold’s value. That, too, was a lie. To cover his tracks, Dunlap created fake legal documents.
Those documents hid the fact that he never held the gold or the art.
The scheme ran for five years before authorities caught up with him. During that time, Dunlap kept pulling in new investors with the same false promises.
Many victims lost their entire life savings in the process.
Federal Jury Convicts Dunlap on Mail Fraud Charges
A federal jury in the Northern District of Illinois found Dunlap guilty of mail fraud.
The U.S. Attorney’s Office for the Northern District of Illinois announced the conviction. Besides, the FBI’s Chicago Field Office and IRS Criminal Investigation also played key roles in the case.
The U.S. Securities and Exchange Commission provided additional assistance.
So did the U.S. Attorney’s Office for the Eastern District of Virginia. The coordination across agencies helped build a strong case against Dunlap.
Assistant U.S. Attorneys Jared Hasten and Paige Nutini argued that Dunlap showed no remorse. They noted his lies grew bigger over the years.
The government called for a sentence that would serve as a warning to others planning similar crimes.
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Judge Hunt ordered Dunlap to pay full restitution to his victims alongside the prison term.
IRS Criminal Investigation Special Agent-in-Charge Adam Jobes spoke about the human cost of the fraud. He noted the scam did not just drain bank accounts. It destroyed years of hard work and financial security for real people.
U.S. Attorney Andrew S. Boutros backed the call for a serious sentence.
Prosecutors argued the punishment needed to match the scale of the harm caused. Nearly 1,000 people trusted Dunlap with their money and walked away with nothing.
The case highlights growing federal efforts to crack down on crypto fraud. Authorities continue to pursue cases where digital assets serve as tools for deception.
The 23-year sentence stands as one of the sterner punishments handed down in a cryptocurrency fraud case in recent years.
