The US Department of Justice (DOJ) has announced that it has arrested two men for a $1.1 million NFT scam.
The two men Ethan Nguyen and Andre Llacuna apparently acquired $1.1 million for the scam selling NFT characters called ‘Frosties’ and then they shut the project down.
U.S. Attorney Damian Williams said: “NFTs have been around for several years, but recently mainstream interest has skyrocketed. Where there is money to be made, fraudsters will look for ways to steal it. As we allege, Mr. Nguyen and Mr. Llacuna promised investors the benefits of the Frosties NFTs, but when it sold out, they pulled the rug out from under the victims, almost immediately shutting down the website and transferring the money. Our job as prosecutors and law enforcement is to protect investors from swindlers looking for a payday.”
IRS-CI Special Agent-in-Charge Thomas Fattorusso said: “NFTs represent a new era for financial investments, but the same rules apply to an investment in an NFT or a real estate development. You can’t solicit funds for a business opportunity, abandon that business and abscond with money investors provided you. Our team here at IRS-CI and our partners at HSI closely track cryptocurrency transactions in an effort to uncover alleged schemes like this one.”
You can find out more details about the alleged NFT Scam over at the DOJ website at the link below.
Image Credit: Frosties