Alleged Fraudsters Face Charges for $22 Million Cryptocurrency Scam

Two Southern California men, Gabriel Hay and Gavin Mayo, are currently facing charges for allegedly defrauding investors of over $22 million in cryptocurrency through fraudulent NFT and digital asset schemes. The indictment against them reveals a series of “rugpulls,” where they solicited funds for NFT projects only to abandon them after collecting investments. Some of the projects involved in the alleged scams include Vault of Gems, Faceless, and Clout Coin.

Deceptive Practices and False Claims

Prosecutors claim that Hay and Mayo misled investors with false claims and deceptive project plans, luring them into investing in projects that were never intended to come to fruition. When a project manager exposed their fraudulent activities, they allegedly resorted to harassing him and his family in an attempt to silence him.

Potential Legal Consequences

If convicted, both Hay and Mayo could face up to 20 years for wire fraud and conspiracy charges, in addition to five years for stalking. The case is being investigated by HSI Baltimore and prosecuted by the Justice Department’s National Cryptocurrency Enforcement Team (NCET), which is dedicated to combating cryptocurrency fraud and holding perpetrators accountable for their actions.

It is crucial for investors to exercise caution and due diligence when considering investing in cryptocurrency projects, especially those promising high returns or using unfamiliar terms like NFTs. By staying informed and conducting thorough research, individuals can protect themselves from falling victim to fraudulent schemes.