Two men in Los Angeles were arrested on charges of allegedly defrauding investors of over $22 million in crypto assets through NFT projects. They are accused of multiple crimes involving NFT projects.
Charges Against Gabriel Hay and Gavin Mayo
The U.S. Department of Justice has charged Gabriel Hay and Gavin Mayo with conspiracy to commit wire fraud, wire fraud, and stalking. They are alleged to have promoted NFT and digital asset projects while making materially false and misleading statements.
Alleged Actions of the Accused
Prosecutors allege that Hay and Mayo provided false project roadmaps and failed to deliver on development plans. They promoted the Vault of Gems project as the first NFT project pegged to a hard asset but abandoned it after collecting funds from investors.
Law Enforcement Response
Authorities allege the accused used various tactics to hide their involvement in projects, falsely identifying others as the project owners. The Department of Justice is committed to working with law enforcement to tackle fraud in the rapidly developing cryptocurrency sector.
The charges against Hay and Mayo highlight the need for due diligence in digital asset investments. Authorities continue to work on identifying and curbing fraudulent practices in this fast-evolving field.
