Gate News message, April 17 — Robert Dunlap, a 55-year-old Houston entrepreneur, was sentenced to 23 years in federal prison on April 15 for orchestrating a massive cryptocurrency fraud scheme worth $20 million. U.S. District Judge LaShonda A. Hunt delivered the verdict in the Northern District of Illinois, where Dunlap was previously convicted on two counts of mail fraud.

Between 2018 and 2023, Dunlap promoted Meta-1 Coin as a digital asset backed by $44 billion in gold (verified by an accounting firm) and $1 billion in fine art by Picasso, Van Gogh, and Dalí. Investors were promised minimal-risk returns of up to 224,923%. Dunlap’s automated trading bots on the Meta Exchange platform created false impressions of rising prices and volume. However, the gold and paintings never existed. Dunlap and accomplices fabricated documents, misled over 1,000 victims who liquidated IRAs and life savings, and siphoned millions to purchase luxury items including a Ferrari. An SEC emergency asset freeze in 2020 failed to halt the scheme, which continued until federal authorities intervened. Dunlap was ordered to pay full restitution to victims. Prosecutors called him “unrepentant,” noting his deceptions grew bolder over time.

Dunlap’s conviction coincides with rising crypto fraud. The FBI’s 2025 Internet Crime Report, released April 6, revealed that U.S. citizens lost nearly $21 billion to cybercrimes, with crypto fraud accounting for 181,565 cases totaling over $11 billion—a 22% year-over-year increase. Texas ranked second nationally in cybercrime losses at $1.8 billion. Recently, an international operation between the U.S., Britain, and Canada targeted “pig-butchering” investment scams, freezing approximately $12 million in stolen crypto assets from an estimated $45 million in total theft.

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