Two 23-year-olds from California, Gabriel Hay and Gavin Mayo, were arrested in Los Angeles for allegedly defrauding investors of over $22 million in crypto assets through a series of NFT rug pulls.
The United States Department of Justice announced that the pair face charges including conspiracy to commit wire fraud, wire fraud, and stalking.
According to prosecutors, Hay and Mayo promoted various NFT and digital asset projects, providing misleading roadmaps and making “materially false and misleading statements” about their intentions to fulfill project promises.
One such project, Vault of Gems, was marketed as the first NFT project “pegged to a hard asset.” However, prosecutors claim the duo abandoned the initiative after collecting millions from investors.
Principal Deputy Attorney General Nicole Argentieri stated: “Gabriel Hay and Gavin Mayo allegedly defrauded investors in digital asset projects of tens of millions of dollars and threatened an individual who attempted to expose their roles in these fraudulent schemes.”
When a project manager revealed their involvement in another NFT project, Faceless, Hay and Mayo allegedly resorted to harassment and intimidation, targeting the individual and their family.
The Justice Department revealed that the duo used similar tactics across multiple projects, including Sinful Souls, Clout Coin, Dirty Dogs, MoonPortal, and Squiggles.
To obscure their involvement, they reportedly misrepresented others as the project owners.
Argentieri emphasized the Justice Department’s commitment to combating digital asset fraud, saying: “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money.”
Officials vowed to work with law enforcement to uproot crypto fraud schemes and protect investors.
No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.
