Two California men are facing federal charges for allegedly running a massive NFT investment scam. The scheme allegedly defrauded investors out of millions of dollars.
The Alleged Scam
23-year-olds Gabriel Hay of Beverly Hills and Gavin Mayo of Thousand Oaks are accused of conspiracy and wire fraud. Prosecutors say they orchestrated multiple “rug pull” scams, a type of fraud where creators inflate the price of a new cryptocurrency or NFT before selling their holdings, leaving investors with worthless assets.
The alleged scheme ran from May 2021 to May 2024. Hay and Mayo allegedly promoted several altcoin and NFT projects, making false claims about their launch dates and potential value. One example cited was the “Vault of Gems” NFT project, falsely advertised as the “first NFT project pegged to a hard asset.” After raising millions, the project was abandoned.
Other projects allegedly involved include Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. To avoid detection, Hay and Mayo allegedly lied about their involvement and instructed others to do the same.
The Aftermath
Homeland Security Investigations (HSI) Executive Associate Director Katrina W. Berger stated that the men allegedly defrauded investors for three years. She emphasized that such technological fraud, while not violent, is not victimless. HSI is committed to investigating and dismantling such cryptocurrency fraud networks.
Additionally, Hay and Mayo are charged with stalking for allegedly harassing a developer who exposed their involvement in one of the projects.
If convicted on all charges, they face up to 25 years in prison.
