2 years ago
The U.S. Department of Justice (DOJ) has charged 2 radical allegedly down a million-dollar non-fungible token (NFT) “rug pull” scheme. They abandoned the NFT task wrong hours aft selling out, deactivated the website, and transferred implicit $1 cardinal successful crypto to the wallets they controlled, the justness section explained.
NFT Purchasers Defrauded successful a Rug Pull Scam
The U.S. Justice Department announced Thursday that 2 20-year-olds person been charged successful a “non-fungible token (NFT) fraud and money-laundering scheme.” The defendants, Ethan Nguyen and Andre Llacuna, allegedly defrauded purchasers of NFTs advertised arsenic “Frosties.”
According to the DOJ, connected oregon astir Jan. 9, the defendants “abandoned the Frosties NFT task wrong hours aft selling retired of Frosties NFTs, deactivated the Frosties website, and transferred astir $1.1 cardinal successful cryptocurrency proceeds from the strategy to assorted cryptocurrency wallets nether their power successful aggregate transactions designed to obfuscate the archetypal root of funds.”
U.S. Attorney Damian Williams said:
Mr. Nguyen and Mr. Llacuna promised investors the benefits of the Frosties NFTs, but erstwhile it sold out, they pulled the rug retired from nether the victims, astir instantly shutting down the website and transferring the money.
Nguyen and Llacuna were arrested successful Los Angeles, California, arsenic they prepared to merchantability a 2nd acceptable of NFTs advertised arsenic “Embers,” the DOJ noted.
The Justice Department believes that Embers is “another fraud scheme,” noting that it was expected to motorboat connected oregon astir March 26 and anticipated to make astir $1.5 cardinal successful cryptocurrency proceeds.
The defendants “are each charged with 1 number of perpetrate ligament fraud … and 1 number of conspiracy to perpetrate wealth laundering,” the DOJ said, noting that each number carries a maximum condemnation of 20 years successful prison.
What bash you deliberation astir this NFT rug propulsion case? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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