The United States Department of Justice has charged two men from California, Gabriel Hay of Beverly Hills and Gavin Mayo of Thousand Oaks, with a major NFT fraud that scammed buyers out of more than 22 million dollars. The defendants were arrested in Los Angeles last Thursday.
This case is described as the largest prosecution for NFT fraud in the department's history. From May 2021 to May 2024, Hay, also known by aliases such as 'Mr. Handz', 'Diamondhandz', 'Centurion', and 'Vaultkeeper', along with Mayo, known as 'Gavinm', promoted NFT projects using false statements and misleading project roadmaps. They are accused of luring victims through NFT projects minted on the Ethereum and Solana blockchains. These projects include Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin.
The defendants used aliases and fake projects to deceive victims.
The fraud affected multiple NFT projects and a large number of buyers.
The case may have a significant impact on the regulation and security of NFT projects in the future.
This case highlights the need for greater regulation and security in the NFT market, and may serve as an example to prevent future scams. 🚨
