US DOJ Charges Two California Residents in Massive NFT Scam
Date: 2024-12-26 Author: Oliver Abernathy Categories: IN WORLD
According to the DOJ, Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, both 23, used deceptive methods to raise funds from May 2021 to May 2024. They promoted multiple crypto projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. To conceal their roles in these schemes, Hay and Mayo impersonated others or registered the projects under fictitious names.
Investors were presented with attractive development plans, detailed in “roadmaps.” For example, Vault of Gems was positioned as the first NFT project tied to physical assets. However, after attracting large sums, the organizers stopped the projects. The indictment also notes that one of the managers of the Faceless project, who revealed their involvement, was subjected to threats that affected his family.
Hay and Mayo are charged with conspiracy to commit fraud and using psychological pressure. If found guilty, they face more than 25 years in prison.
First Deputy Attorney General Nicole Argentieri emphasized that fraudsters are actively using new technologies to illegally enrich themselves: “Hay and Mayo defrauded investors of tens of millions of dollars by threatening the person who tried to expose their crimes. Cases like these demonstrate how fraudsters are adapting to new financial instruments to deprive people of their honestly earned money.”
The Justice Department has previously brought charges for similar crimes. For example, in November, a Massachusetts resident was charged with illegally exchanging $1 million worth of bitcoins. Alexey Andryunin, the founder of cryptocurrency market maker Gotbit, was also charged with fraud and manipulation of the digital asset market.
