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$22M NFT Fraud Scandal: Arrests Made Over Alleged Rug Pull Scheme
A major blow has been dealt to the world of non-fungible tokens (NFTs) as two individuals, Gabriel Hay and Gavin Mayo, have been arrested in connection with a $22 million fraud scheme. The Department of Justice (DOJ) announced the arrests yesterday, citing allegations of conspiracy to commit wire fraud, multiple counts of wire fraud, and stalking.
According to the indictment, the duo promoted NFT projects while spreading misleading information to attract investors. Prosecutors claimed that Hay and Mayo provided false project roadmaps and exaggerated promises about the ventures, ultimately defrauding numerous individuals out of millions.
One specific project, Vault of Gems, has raised concerns due to its alleged abandonment after raising millions from unsuspecting investors. The DOJ alleges that investors were misled by false promises, only to discover that there was no intention to deliver on the promised roadmap.
In addition to the fraud allegations, prosecutors also claimed that Hay and Mayo used intimidation tactics to silence those who exposed their involvement in the scheme. A project manager linked them to the Faceless NFT project, prompting the duo to allegedly harass the individual and their family. Furthermore, fake project owners were listed and true identities concealed across multiple projects.
The indictment also details an instance of targeted harassment aimed at a whistleblower and his family. Threatening emails and messages were sent from lawyers and investors, demanding the retraction of claims. One email even threatened to falsely accuse the parents of inappropriate sexual conduct if the whistleblower did not comply.
The Instagram message in September 2023 read, “Don’t think we forgot about you… Get ready to get destroyed.” The DOJ believes this was an attempt to suppress further revelations and protect their fraudulent operations.
This shocking scandal highlights the need for greater transparency and accountability within the NFT space.
Source: coinchapter.com
