Two NFT creators indulge in been charged with fraud after conducting a rug pull.
Shutterstock list by Christopher E. Zimmer
Key Takeaways
- The U.S. Department of Justice has charged the creators of the Frosties NFT sequence with fraud and money laundering.
- Ethan Nguyen and Andre Llacuna allegedly stole over $1 million by conducting a rug pull while promoting their NFTs.
- Though the creators didn’t bring on the mission’s guarantees, Frosties NFTs remain in circulation among merchants.
The U.S. Department of Justice (DOJ) has charged two folk considering the Frosties NFT mission with fraud.
Frosties Creators Carried Out Rug Pull
Frosties creators Ethan Nguyen and Andre Llacuna reportedly defrauded merchants of $1.1 million by their procedure.
The DOJ says that the 2 folk conducted a “rug pull” while promoting their NFTs. The creators equipped tokens that contains ice cream-themed collectible characters with diversified attributes. Consumers would indulge in been in a jam to assemble cryptocurrency by staking and breeding. They’d indulge in won entry to a broader metaverse sport.
Then as soon as more, the 2 creators did no longer did bring the advantages and rewards that they initially advertised. After the Frosties NFTs equipped out, the creators deactivated the mission’s web set and despatched the money they earned to their very derive cryptocurrency wallets.
Nguyen and Llacuna labored below diversified aliases together with “Frostie,” “Jakefiftyeight,” “Jobo,” “Joboethan,” “Meltfrost,” and “heyandre.”
Every has been charged with one count of wire fraud, carrying a maximum sentence of 20 years in reformatory, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years.
Frosties Tokens Proceed to Waft into
Though the DOJ did no longer keep an announcement except at the present time, the Frosties rug pull took jam months ago on Jan. 9.
Though that event shunned merchants from reaping the promised advantages, Frosties NFTs remain in circulation. OpenSea experiences that 69.4 ETH ($216,000) of NFTs indulge in been traded thus some distance.
Also in circulation is moreover a neighborhood-made sequence called Wrapped Frosties, which objectives to fulfill just among the mission’s genuine targets. That sequence has circulated 2.6 ETH ($8,000) thus some distance.
The genuine creators moreover deliberate to launch a 2nd NFT line called Embers, which turn out to be as soon as anticipated to assemble $1.5 million. It looks that this sequence is light active below a determined group.
Disclosure: On the time of writing, the author of this portion owned BTC, ETH, and other cryptocurrencies.
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