The duo abandoned the project, closed the website, and committed money laundering allegedly selling fake NFTs to investors before abandoning $ 1.1 million in digital funding. I was charged with charges.
They received the virtual currency and ran.
Prosecutors in the southern district of New York have charged two 20-year-olds on Thursday on suspicion of NFT fraud.
Ethan Vinh Nguyen and Andre Marcus Quiddaoen Llacuna said they had made money laundering for selling fake NFTs to investors before abandoning the project, closing the website and abandoning $ 1.1 million in digital funding. He was charged with conspiracy.
NFTs, or non-fungible tokens, are probably a proprietary digital asset and are lacking in blockchain technology. In recent years, NFTs have fueled the digital art sales boom.
“The trend market and the demand for NFT investments are attracting the attention of fraudsters as well as real artists,” said Ricky Patel, a special agent for the Homeland Security Investigation, in a statement. “The arrested thief hid behind an online ID, promised investors rewards, giveaways, and exclusive opportunities before implementing the” rug pull “scheme. Investors have empty pockets and no legitimate investment. “
Prosecutors said the pair raised their stakes on so-called “Frosties” series NFTs (removing websites and sending $ 1.1 million to multiple virtual wallets) within hours of selling out digital tokens. I am.
Ethan Vinh Nguyen and Andre Marcus Quiddaoen Llacuna were charged with wire fraud and conspiracy for committing money laundering allegedly selling fake NFTs to investors before abandoning the project.U.S. Department of Justice
Prosecutors said Nguyen and Lacuna had planned to repeat the digital fly-by-night act at the March 26 NFT drop called “Embers.”
The pair is convicted and faces up to 20 years in prison.