In a series of non-fungible token (NFT) rug pulls, two 23-year-olds from California allegedly deceived investors out of more than $22 million in crypto assets. They are now facing fraud charges after being detained in Los Angeles.
Gabriel Hay and Gavin Mayo were each charged with one count of conspiracy to commit wire fraud. Two counts of wire fraud, and one count of stalking, according to a news release from. The United States Department of Justice’s Office of Public Affairs.
DOJ Charges Two for NFT Fraud
Claiming to have done promotional efforts in support NFT Fraud Scheme asset ventures, the two purportedly supported and promoted the projects. Allegedly, they made or led others to make materially false and misleading statements” regarding the digital asset initiatives, according to the Justice Department’s charges.
Hay and Mayo were accused by prosecutors of providing false and misleading project roadmaps. That included plans for digital asset and NFT projects that they had no intention of completing. According to the indictment, Hay and Mayo advertised the Vault of Gems NFT initiative. The pioneering effort to link a digital token to a physical item. After receiving millions of dollars from investors, the pair allegedly abandoned the project, despite the commitment.
Head of the Justice Department’s Criminal Division Principal Deputy Attorney General Nicole Argentieri claimed the two resorted to threats when someone tried to expose them. Argentieri said. An individual who tried to reveal Gabriel Hay and Gavin Mayo’s alleged roles. Defrauding investors of tens of millions of dollars through digital asset initiatives was threatened.
DOJ Charges Duo in NFT Fraud Scheme
The two were reported to have threatened the family and harassed the individual. Who revealed them as the masterminds of the Faceless NFT project, according to the press statement. Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, Roost Coin, Vault of Gems, Sinful Souls, Faceless, and Clout were among the digital asset projects that the two individuals were accused of defrauding by the Justice Department.
According to the government officials, Hay and Mayo also employed other. Strategies to hide their involvement in the project, such as posing as other people’s proprietors. Prosecutors have stated that their office will collaborate with law enforcement to weed out digital asset fraud, including cryptocurrency. “In order to steal the money that investors have worked. So hard to save, con artists use innovative financial instruments and technology.
Final thoughts
Gabriel Hay and Gavin Mayo’s case highlights the increasing federal oversight NFT Fraud Scheme asset exchanges. In the crypto industry, where lofty goals can hide dishonest goals, their claimed fraudulent actions expose flaws. The rapid response from the DOJ sends a message to anyone who would try to pull off similar schemes that even in developing financial systems, fraud would not be tolerated. The importance of investors being more vigilant and regulators keeping an eye on the ever-changing digital asset market to prevent exploitation is highlighted by this instance.
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