Indictment of California Residents in $22 Million Cryptocurrency Fraud Case
Federal prosecutors have revealed charges against California residents Gabriel Hay and Gavin Mayo, accusing them of participating in a $22 million cryptocurrency fraud scheme.
The charges have been announced as the FBI disclosed that Americans lost over $5.6 billion to cryptocurrency fraud in 2023, marking a 45% increase from the previous year.
As per ABC News, referring to prosecutors, Hay from Beverly Hills and Mayo from Thousand Oaks reportedly conducted multiple “rugpull” schemes from May 2021 to May 2024. They are also accused of launching NFT projects to lure investors before abandoning the projects while retaining the funds.
The U.S. Attorney’s Office has indicted both individuals for conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Each fraud charge carries a potential 20-year prison sentence, while the stalking charge could add an extra five years.
Both 23 years old, the duo allegedly promoted various fraudulent ventures, including the “Vault of Gems NFT,” managing to gather millions from investors before deserting the projects.
The indictment outlines their efforts to conceal their involvement by falsely attributing project ownership to others. Prosecutors also claim that the defendants initiated a harassment campaign against the manager and their family.
This case is part of a larger trend in cryptocurrency-related crimes, with the FBI noting that although crypto crimes make up only 10% of financial fraud complaints, they account for nearly half of all financial losses suffered by Americans due to scams in 2023.
Investment schemes resembling those allegedly carried out by Hay and Mayo resulted in the highest losses nationwide, totaling $4 billion.
