Gabriel Hay and Gavin Mayo, two men from Southern California, have been charged with defrauding investors of more than $22 million through fraudulent non-fungible token (NFT) and cryptocurrency schemes. According to prosecutors, the duo masterminded a series of “rugpulls,” soliciting investments for NFT projects that they abandoned after collecting funds. Key projects implicated in the fraud include Vault of Gems, Faceless, and Clout Coin.

The defendants allegedly misled investors with false promises, deceptive marketing, and fabricated plans for their projects. Once funds were secured, the projects were discarded, leaving investors with significant losses. One of the schemes, Vault of Gems, was particularly notorious for its sudden collapse, with investors losing millions.

When confronted by a project manager who exposed their fraudulent activities, Hay and Mayo allegedly turned to harassment. Prosecutors claim the pair intimidated the whistleblower and his family, further compounding the severity of their crimes.

The investigation, led by Homeland Security Investigations (HSI) Baltimore, uncovered the full scope of the defendants’ alleged misconduct. The Justice Department’s National Cryptocurrency Enforcement Team (NCET) is handling the prosecution. If found guilty, Hay and Mayo could each face up to 20 years in prison for wire fraud and conspiracy charges, along with an additional five years for stalking.

This case highlights the growing threat of cryptocurrency fraud and the increasing vigilance of authorities in combating such crimes.