California men charged for $22 million crypto scam

Source Cryptopolitan

Two California men have been charged for committing a cryptocurrency scam worth $22 million. According to authorities, the suspects, 23-year-old Gabriel Hay of Beverly Hills and Gavin Mayo of Thousands Pam’s were accused of scamming unsuspecting investors in a crypto scheme.

In a statement by prosecutors, the two men were charged with taking funds for investment in non-fungible tokens (NFTs) and disappearing. The prosecutors also mentioned that the duo floated several crypto schemes that met the same end as their NFT scheme.

According to a statement from the United States Attorney’s office, the two men, with help from another person, carried out this scam from May 2021 to May 2024. The statement revealed that they carried out an act known as rug pull, where developers or people in charge of a project take out investor funds and abandon the project.

Two California men charged for multiple crypto scam schemes

In the indictment, the prosecutors noted that the suspects, Hay and Mayo, lied to investors about the state of one of their projects, Vault of Games. The duo claimed that the NFT project will be the first to be pegged to a hard asset. They also lied to investors that the Vault of Games project would work with jewelers worldwide, a claim that was found to be false. In addition, the men also claimed they had started making their exchange, where jewelers would come and register to provide service.

Things started to go south when the Vault of Games’ handle on X posted in November 2021, asking what was happening. After a while, the followers gathered around the project’s comment section, accusing them of deleting the investor’s page on their Discord channel. Most users were frustrated, lashing out at the project, with one thing evident; they had been scammed by its founders. The comments later accused the developers of stealing the community funds, with most of them disappointed that they failed to deliver on their promise.

Prosecutors list out the allegations against the men

According to the prosecutors, the California men acted brazenly and without remorse, transferring the stolen funds into their wallets. They also mentioned that the Vault of Games was not the duo’s first rodeo, tying them to the rug pulls of projects like Faceless, Sinful Souls, Dirty Dogs, Uncovered, Roost Coin, Clout Coin, MoonPortal, among others.

In her statement, the Department of Justice (DOJ) Principal Deputy Assistant Attorney General Nicole Argentieri condemned the act, citing the dangers of emerging technologies. “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money,” Argentieri said.

Argentieri also assured the public that the department will continue a clampdown on individuals and entities carrying out these acts. “The department is committed to protecting investors and will continue to work with our law enforcement partners to root out fraud involving cryptocurrency and other digital assets and bring offenders to justice,” she added.

In addition to their charges, prosecutors claimed that Hay and Mayo stalked one of their project managers, harassing him for outing one of their projects as a scam. The prosecutors said when the project manager, who was first blamed for the rug pull, pointed to the Californian men as the creators of the project, they sent several threatening messages to him in hopes of getting him to recant his story. They also posed as fake lawyers to make him back down from talking to the cops.

In one of the emails, Hay and Mayo threatened to falsely accuse the project manager’s parents of carrying out improper sexual acts. The indictment mentioned that the last threat came in September 2023, with the duo reminding the project manager that they were still watching him while planning ‘to destroy’ him. The California men are charged with a count of conspiracy to commit wire fraud, one count of stalking, and two counts of wire fraud. If the prosecutors get a favorable ruling, they could spend up to 25 years in jail.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
The $589 XRP Dream: Believers Aren’t ‘Delusional’ Enough, Expert SaysA known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
Author  NewsBTC
Dec 17, Tue
A known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
placeholder
XRP Price Steals the Spotlight: Dips Look Increasingly AttractiveXRP price started a fresh increase above the $2.50 zone. The price is now consolidating gains and might soon aim for a move above the $2.62 resistance. XRP price started a fresh increase above the
Author  NewsBTC
Dec 18, Wed
XRP price started a fresh increase above the $2.50 zone. The price is now consolidating gains and might soon aim for a move above the $2.62 resistance. XRP price started a fresh increase above the
placeholder
Nvidia vs. Broadcom: Which Is the Better AI Chip Stock to Own in 2025?When it came to artificial intelligence (AI) infrastructure in 2024, Nvidia (NASDAQ: NVDA) reigned supreme.
Author  The Motley Fool
Dec 19, Thu
When it came to artificial intelligence (AI) infrastructure in 2024, Nvidia (NASDAQ: NVDA) reigned supreme.
goTop
quote