Two California men, Gabriel Hay and Gavin Mayo, have been charged with orchestrating a series of NFT rug pulls that defrauded investors of over $22 million. The U.S. Department of Justice has indicated that this is the largest NFT scheme it has prosecuted. Hay, who used aliases like 'Mr. Handz' and 'Vaultkeeper,' alongside Mayo, promoted NFT projects with misleading claims from May 2021 to May 2024. These projects, including Vault of Gems and Faceless, promised future developments and ties to real-world assets that were never fulfilled. The pair allegedly harassed a project manager who exposed their fraudulent activities. Each man faces severe criminal charges, with potential sentences of up to 20 years for conspiracy and wire fraud counts, and up to five years for stalking. The case demonstrates a growing trend of technological fraud within the NFT space.

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