The U.S. Securities and Change Fee has requested a default judgment towards three firms and 4 people related to the allegedly fraudulent artwork and gold-backed cryptocurrency Meta 1 Coin.

The SEC filed its Nov. 18 movement for a default judgment after the defendants failed to look to place their case, regardless of having corresponded with each the court docket and authorized illustration. The defendants are Meta 1 Coin Belief, Clear Worldwide Belief, and Ironheart Belief, and people Robert P. Dunlap, Nicole Bowdler, Wanda Traversie-Warner, and Alfred Warner Jr.

They’re accused of defrauding at the very least 500 traders worldwide out of $9 million in trade for crypto tokens that Meta 1 Coin allegedly fraudulently represented as being backed by both $1 billion value of fantastic artwork property or $2 billion value of gold.

In accordance with a lawsuit filed by the SEC in March, no fantastic artwork assortment, gold holdings, and even digital foreign money ever existed, and investor funds had been spent on private bills.

“Defendants enticed traders with the attract of a cryptocurrency, however the securities providing is nothing however a automobile to steal traders’ cash.”

Meta 1 allegedly informed traders that cash bought by its pre-initial coin providing would respect in worth from $22.22 or $44.44 to $50,000 every over two years.

The grievance additionally famous that Bowdler claimed to have psychic skills when trying to solicit potential traders.

The SEC is in search of civil penalties, disgorgement, and a everlasting injunction towards the 4 people and three companies. Aid defendants Pramana Capital Inc. and proprietor Peter Ok. Shamoun will not be included within the movement and stay within the case.

Pramana allegedly obtained $1 million in funds for funding into Meta 1, with Shamoun additionally accused of utilizing $215,000 to buy a Ferrari.