In a series of non-fungible token (NFT) rug pulls, two 23-year-olds from California allegedly. Deceived investors of more than $22 million in Crypto assets. Detained in Los Angeles, they now face fraud charges.
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.
The two purportedly endorsed and promoted the projects, claiming to have made promotional efforts to support Charged $22M NFT digital asset ventures. According to the Justice Department’s charges, they made or led others to make “materially false and misleading statements” regarding the digital asset initiatives.
Hay and Mayo were accused by prosecutors of providing false and misleading project roadmaps. That included plans for digital assets and NFT projects they did not intend to complete.
JCharges Two for Multi Million Dollar NFT Fraud
In their defense, Hay and Mayo allegedly boasted that their Vault of Gems NFT initiative would be the pioneering effort of its kind, “pegged to a hard asset.” 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 wanted to reveal Gabriel Hay and Gavin Mayo’s alleged roles. Defrauding investors of tens of millions of dollars through digital asset initiatives was threatened.
Hay & Mayo Face NFT Fraud and Threat Allegations
The two were reported to have threatened the family and harassed them. According to the press statement, the individual who revealed them as the masterminds of the Charged $22M NFT. Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, Roost Coin, Vault of Gems, Sinful Souls, Faceless. Clout was among the digital asset projects that the two individuals were accused of defrauding by the Justice Department.
According to government officials, Hay and Mayo also employed others. 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. Fraudsters are exploiting new technologies and financial products to steal investors’ hard-earned money, Argentieri added.
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