California Residents Charged in $22M Crypto Fraud Case
Federal prosecutors have charged Gabriel Hay and Gavin Mayo, 23-year-old residents of California, with allegedly running a $22 million cryptocurrency fraud scheme.
Allegations of Fraudulent Schemes
According to prosecutors, Hay and Mayo executed several “rugpull” schemes from May 2021 until May 2024. The plans involved promising NFT projects to attract investors, such as the “Vault of Gems NFT.” The defendants abandoned these projects after receiving substantial amounts and left the investors with nothing.
The indictment highlights the duo’s attempts to obscure their identities by misattributing project ownership to others. Prosecutors also accuse the pair of launching a harassment campaign targeting a project manager and their family, further exacerbating the case.
Serious Charges with Heavy Penalties
The U.S. Attorney’s Office has charged Hay and Mayo with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Each count of wire fraud carries a potential 20-year prison sentence, while the stalking charge could result in an additional five years. These serious allegations highlight the growing scrutiny placed on fraudulent activity within the cryptocurrency sector.
A Growing Threat in Crypto
This indictment comes against the backdrop of a surge in cryptocurrency-related crimes in the US. According to the FBI, Americans lost over $5.6 billion to fraud in cryptocurrency during 2023, which is 45% more compared with 2022.
Of those, investment scams like the ones Hay and Mayo allegedly ran, racked up the biggest losses at $4 billion nationwide. Crypto crimes accounted for nearly half of the financial losses reported in 2023 despite comprising just 10% of all financial fraud complaints.
This case really underlines the vulnerabilities of the evolving space of cryptocurrencies. Law enforcement agencies have continued to emphasize the need for investor vigilance and caution when undertaking investments in digital assets.
