Gabriel Hay and Gavin Mayo, two 23-year-olds from California, were arrested for allegedly defrauding investors of over $22 million in cryptocurrency through a non-fungible token (NFT) rug pull. They face charges including conspiracy to commit wire fraud and stalking. The duo promoted various NFT projects, misleading investors with false statements and abandoned their projects after collecting funds. They claimed that the Vault of Gems NFT would be pegged to a hard asset but failed to deliver, leaving investors with significant losses. Furthermore, they threatened a project manager who exposed their fraudulent actions, exposing the lengths they went to in hiding their involvement. The Justice Department highlighted their use of different tactics to mislead investors and announced commitment to combatting crypto fraud.

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