The United States Securities and Exchange Commission has filed for a default judgment against three companies and four individuals related to the alleged fraudulent art and gold-backed cryptocurrency Meta 1 Coin.

The second archived his November 18 motion for a judgment in default after the defendants failed to present their case, despite having corresponded with both the court and the legal representation. The defendants are Meta 1 Coin Trust, Clear International Trust and Ironheart Trust, and individuals Robert P. Dunlap, Nicole Bowdler, Wanda Traversie-Warner and Alfred Warner Jr.

They are accused of scam at least 500 investors worldwide of $ 9 million in exchange for crypto tokens that Meta 1 Coin allegedly fraudulently represented as being backed by $ 1 billion in artifacts or $ 2 billion in gold.

According to a lawsuit filed by the SEC in March, there never existed an art collection, gold holdings, or even digital currency, and investor money was spent on personal expenses.

“Defendants have enticed investors with the allure of a cryptocurrency, but the offering of securities is nothing more than a means of stealing investors’ money.”

Meta 1 would have told investors that coins purchased through the pre-initial coin offering would increase in value from $ 22.22 or $ 44.44 to $ 50,000 each over two years.

The complaint also noted that Bowdler claimed to have psychic abilities in soliciting potential investors.

The SEC is demanding civil penalties, remission and a permanent injunction against the four individuals and three companies. Defendants Pramana Capital Inc. and owner Peter K. Shamoun are not involved in the motion and remain in the case.

Pramana reportedly received $ 1 million in funds for investments in Meta 1, and Shamoun was also accused of using $ 215,000 to buy a Ferrari.