The Capital
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The Capital

US Court Freezes All Funds Raised in a $9 Million Token Sale

The US federal court froze all funds raised as a result of the ICO Meta 1 Coin after the Securities and Exchange Commission (SEC) accused the company of fraud.

In March SEC accused the Meta 1 Coin cryptocurrency project of conducting a fraudulent ICO and appropriating $4.3 million from more than 150 investors. According to the SEC, the organizers of the project misled investors by providing them with false information that Meta 1 Coin tokens were provided with art objects worth $1 billion or gold worth $2 billion.

The Texas U.S. District Court froze the assets of individuals and entities that received funds raised during the Meta 1 Coin ICO. The court agreed with the SEC that the defendants could try to “hide or transfer assets,” including by sending them abroad if the funds were not frozen. All fiat currencies and cryptocurrencies associated with the ICO Meta 1 Coin, during which the company managed to raise about $9 million, were frozen.

Recall that in April of this year, the SEC accused the founders of the Dropil cryptocurrency startup of cheating investors and conducting an unregistered ICO in the amount of $1.8 million.

Author: Marko Vidrih

Featured image credit: Unsplash

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Marko Vidrih

Marko Vidrih

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Most writers waste tremendous words to say nothing. I’m not one of them.