DOJ cracks down on ‘rug pulls,’ charging Frosties NFT project founders
According to a Thursday release from the Attorney’s Office of the Southern District of New York, 20-year-olds Ethan Nguyen and Andre Llacuna were arrested in Los Angeles and both charged with one count of wire fraud and one count of conspiracy to commit money laundering in “connection with a million-dollar scheme to defraud purchasers” of the NFTs “Frosties.”
The DOJ’s complaint alleges that they “abruptly abandoned” and shut down the project within hours of selling out $1.1 million worth of NFTs, and transferred the proceeds to various crypto wallets “under their control in multiple transactions designed to obfuscate the original source of funds.” ...
As part of the release, IRS-CI special agent-in-charge Thomas Fattorusso warned that his team is watching crypto closely. Despite NFTs being a relatively new choice for financial investments, the “rules apply to an investment in an NFT or a real estate development:” ...
See the full story here: https://cointelegraph.com/news/doj-cracks-down-on-rug-pulls-charging-frosties-nft-project-founders?utm_source=Telegram&utm_medium=social&fbclid=IwAR1cu8TRd8hllIeZq2z1V0pl6qsU29_guhjBiOZY493aKnIFhsvfa2m8H7Y
