According to Deep Tide TechFlow, on December 21, the U.S. Department of Justice announced the filing of a lawsuit against two men from Beverly Hills and Ventura County, accusing them of carrying out a 'rug pull' scam through multiple NFT projects, involving more than $22 million. 23-year-old Gabriel Hay and Gavin Mayo are charged with conspiracy to commit wire fraud, wire fraud, and stalking harassment.
According to reports, the two initiated multiple NFT and digital asset projects, including Vault of Gems, Faceless, and Sinful Souls, between May 2021 and May 2024, deceiving investors through false advertising and misleading roadmaps. After one project manager revealed their identities, the two harassed and intimidated him and his family.
If convicted, each defendant could face up to 20 years in prison for each count of wire fraud and conspiracy, and up to 5 years for stalking harassment. The case is currently being investigated by the U.S. Department of Homeland Security (HSI) Baltimore Field Office.