Yigit Taha OZTURK 
Two 23-year-olds from California, Gabriel Hay and Gavin Mayo, have been arrested and charged with defrauding investors of over $22 million in crypto assets through a NFT rug pull. The two face fraud charges after allegedly promoting and abandoning various NFT and digital asset projects, misleading investors with false claims and unfulfilled promises.
The United States Department of Justice announced that Hay and Mayo were charged with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. They allegedly misled investors with false roadmaps and made materially false statements about the projects, ultimately abandoning them after raising millions from unsuspecting backers.
Misleading NFT Projects
The indictment claims that the duo promoted the Vault of Gems NFT project as the “first NFT project pegged to a hard asset.” However, after raising funds, they abandoned the project, leaving investors with nothing. Prosecutors also claimed they made threats when someone tried to expose their fraudulent activities.
The Justice Department stated that the two harassed a project manager who attempted to expose their role in the Faceless NFT project. The scammers reportedly used intimidation tactics to conceal their involvement, falsely claiming others as the project’s owners.
Fraudulent Tactics Across Multiple Projects
The charges cover multiple digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. The Department of Justice has vowed to work with law enforcement to combat fraud in the crypto and NFT space, which has been a target for fraudulent actors seeking to exploit new technologies for financial gain.
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