The U.S. Department of Justice recently charged Gabriel Hay and Gavin Mayo, two California men, with conspiracy and wire fraud charges for their alleged involvement in a multimillion-dollar non-fungible token (NFT) investment scam. The charges stem from accusations that the duo orchestrated multiple rug pull scams involving NFTs in which they intentionally inflated the price of new assets before selling them off, causing investors to suffer significant financial losses.
According to court documents, Hay and Mayo promoted various altcoin and NFT projects between May 2021 and May 2024, making false statements about the projects to attract investors. One example provided by the DOJ involves the Vault of Gems NFT project, which the duo falsely claimed was pegged to a hard asset. However, they abandoned the project after receiving millions of dollars from investors. Other projects they were involved in include Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin.
To avoid detection, Hay and Mayo allegedly lied about their involvement in the projects and instructed others to do the same. The press release notes that the defendants also face charges of stalking for allegedly harassing a developer who exposed their connection to one of the crypto projects. If convicted on all counts, they could potentially face prison sentences of up to 25 years.
Homeland Security Investigations (HSI) Executive Associate Director, Katrina W. Berger, emphasized the detrimental impact of technological fraud schemes like the one orchestrated by Hay and Mayo. She stated that such crimes cost investors millions of dollars each year and emphasized that they are not victimless, even though they may not involve physical violence. HSI is committed to investigating, disrupting, and dismantling cryptocurrency fraud networks to protect investors from falling victim to similar scams.
To stay informed about developments in the case and other related news, readers are encouraged to subscribe to email alerts and follow relevant updates on X, Facebook, and Telegram. The DOJ’s actions against Hay and Mayo highlight the risks associated with investing in the rapidly evolving NFT and cryptocurrency markets, underscoring the importance of conducting thorough due diligence before participating in such ventures. It serves as a reminder for investors to exercise caution and skepticism when evaluating opportunities in the digital asset space.
