NFT Scammers from Ethereum and Solana are accused of a$ 22 million floor take scheme.

The U.S. Department of Justice said in an indictment released on Friday that two California men have been accused of organizing a string of NFT rug pulls that totaled more than$ 22 million in buyer bilking. The DOJ said the situation is the largest NFT system it’s always prosecuted.

One count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of trolling are brought against Gabriel Hay of Beverly Hills and Gavin Mayo of Thousand Oaks. The people were detained on Thursday in Los Angeles.

” For three decades, Hay and Mayo evidently lied to their owners in order to defraud them out of millions of dollars”, Katrina W. Berger, senior associate director of Homeland Security Investigations said, in a statement. According to Forbes,” These scientific fraud schemes cost shareholders millions of dollars annually.”

From May 2021 to May 2024, Hay—who went by” Mr. Handz”,” Diamondhandz”,” Centurion”, and” Vaultkeeper” —and Mayo, who went by” Gavinm”, promoted NFT projects using false claims and misleading project roadmaps, the indictment alleged.

A developer makes a sign, deceives that there are plans for future growth, sells the coin on the back burner, and then abruptly vanishes with the investors ‘ money.

According to the prosecution, Hay and Mayo reportedly lured innocent victims with Hydroponic projects minted on the Ethereum&nbsp, and&nbsp, Solana bitcoin, including Vault of Gems, Faceless, Wicked Souls, Clout Coin, Dirty Dogs, Uncovered, Moon Portal, Squiggles, and Sleep Coin.

The trio and some falsely claimed that real-world items like jewelry may be a part of the Vault of Gems NFT collection, and they also made claims about other projects that were never completed, according to the DOJ.

According to prosecutors, Hay and Mayo allegedly collected million from shareholders before giving up on the tasks, leaving investors with the case. Also, the indictment alleges that Hay and Mayo harassed a project manager from the Faceless NFT, who had exposed their false actions.

On each of the crime and wire fraud matters, Hay and Mayo could receive a maximum sentence of 20 years in prison if found guilty, as well as a maximum sentence of five years on the stalking matter.

” Whenever a new purchase craze occurs, swindlers are sure to follow”, U. S. Attorney Martin Estrada said in a statement. My company and our law enforcement partners will continue to work together to stop crypto fraud and stop it from happening to consumers.

Homeland Security Investigations, a section of the Department of Homeland Security with the authority to look into and fight different kinds of monetary crimes, including those involving digital assets, conducted the situation. The National Cryptocurrency Enforcement Team, a particular unit of the DOJ, assisted it.