Gabriel Hay and Gavin Mayo face charges for alleged rugpull schemes and NFT scams defrauding investors.
$22M Crypto Fraud Indictment Unveiled
Federal prosecutors have indicted California residents Gabriel Hay and Gavin Mayo for their alleged involvement in a $22 million cryptocurrency fraud scheme. Both individuals, aged 23, face multiple charges, including conspiracy to commit wire fraud, two counts of wire fraud, and stalking.
Allegations of Rugpull Schemes
Prosecutors allege that between May 2021 and May 2024, Hay and Mayo carried out several rugpull scams and fraudulent NFT projects, such as the “Vault of Gems NFT.” These ventures reportedly raised millions from investors before being abandoned by the duo, who kept the funds.
Attempts to Conceal Involvement
The indictment claims the defendants falsely attributed ownership of their projects to others to hide their involvement. Prosecutors also allege they harassed the project manager and their family to further conceal their actions.
Crypto Crime on the Rise
This case highlights a broader trend in cryptocurrency fraud. According to the FBI, Americans lost over $5.6 billion to crypto scams in 2023, up 45% from the previous year. Investment schemes accounted for $4 billion of these losses, making them the most damaging category of crypto-related crime.
Legal Consequences Await
Each fraud count carries a potential 20-year prison sentence, with the stalking charge adding up to five more years. This indictment is a stark reminder of the risks investors face in the rapidly evolving digital asset space.
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