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Federal prosecutors unsealed an indictment against California residents Gabriel Hay and Gavin Mayo, accusing them of a $22 million crypto fraud scheme.
The charges come as the FBI reports that Americans lost more than $5.6 billion to crypto fraud in 2023, a 45% increase from the previous year.
According ABC NewsAccording to prosecutors, Beverly Hills-based Hay and Thousand Oaks-based Mayo allegedly ran multiple “gun pull” schemes between May 2021 and May 2024. They also allegedly created nft projects to attract investors before abandon them and keep the funds.
The U.S. Attorney's Office charged both individuals with conspiracy to commit wire fraud, two counts of wire fraud and one count of stalking. Each fraud charge carries a possible 20-year prison sentence, and the stalking charge adds a possible additional five years.
The couple, both 23, allegedly promoted several fraudulent projects, including the “nft Vault of Gems,” raising millions from investors before exiting the companies.
The indictment details his attempts to conceal his involvement by falsely attributing ownership of the project to others. Prosecutors also allege that the defendants began a campaign of harassment targeting the manager and his family.
The case is part of a broader trend in cryptocurrency crimes, with the FBI reporting that while cryptocurrency-related crimes account for only 10% of financial fraud reports, they account for nearly half of all financial losses. that Americans suffered due to scams in 2023.
The investment plans, similar to those allegedly carried out by Hay and Mayo, caused the largest losses: 4 billion dollars nationwide.
