Southern California Men Indicted for $22 Million Crypto Fraud

December 21, 2024 William Ross Cryptocurrency News, Finance, US Local News 0

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Two Southern California men have been charged with defrauding investors of over $22 million through a series of fraudulent non-fungible token (NFT) and digital asset schemes. The indictment, unsealed on December 20, 2024, marks the largest NFT fraud scheme prosecuted.

The Alleged Fraudulent Scheme

According to court documents, Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, orchestrated several NFT projects from May 2021 to May 2024. These projects were promoted with false and misleading statements, promising investors lucrative returns. “Hay and Mayo allegedly defrauded investors in digital asset projects of tens of millions of dollars,” stated Principal Deputy Attorney General Nicole M. Argentieri.

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Misleading Roadmaps and False Promises

The indictment reveals that Hay and Mayo provided investors with deceptive project roadmaps, detailing plans for the NFTs that they never intended to fulfill. “For three years, Hay and Mayo apparently lied to their investors in order to defraud them out of millions of dollars,” said HSI Executive Associate Director Katrina W. Berger.

Legal Actions and Arrests

Both men were arrested by Homeland Security Investigations (HSI) in Los Angeles. They face multiple charges, including conspiracy to commit wire fraud, wire fraud, and stalking. “Whenever a new investment trend occurs, scammers are sure to follow,” commented U.S. Attorney Martin Estrada for the Central District of California, reported News.Bitcoin.

Protecting Investors

The Department of Justice emphasized its commitment to protecting investors from such fraudulent schemes. “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money,” Argentieri added.

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William Ross
About William Ross 368 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.

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