Frosties NFT makers face jail time for carpet pulling

Frosties NFT makers face jail time for carpet pulling

The people behind the community-driven project, which has become a scam, are currently being prosecuted in New York’s Southern District Court.

In January, owners of Frosties NFTs were hit with the very unfortunate news that they were virtually thrown under the bus because the project turned out to be a sham. The makers have reportedly brought in about $1.3 million by selling their stock of NFTs and crashing the bottom price to nearly $3 per Frosties NFT.

While everyone thought the perpetrators had no home because they never disclosed their identities, a report from the DoJ confirmed that the two people behind the project were being charged with financial fraud.

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With the announcement, the US Attorney’s Office made it clear that the Department of Justice and agencies involved in financial crimes have been closely investigating malicious activity around NFTs since January.

According to Thomas Fattorusso, a special agent with the IRS-CI, his team and the HSI have been scrutinizing NFT projects and monitoring digital asset transactions to prevent something like this from happening again.

Meanwhile, the Justice Department identified Ethan Nguyen (online alias “Frostie”) and Andre Llacuna (“heyandre”) as the director of Frosties’ fake road map and the abrupt pulling of the carpet.

Damian Williams, the lead attorney for the Frosties case, spoke of the mainstream media pushing NFTs to the public, which became a dangerous market for investors, stating:

“Wherever there is money to be made, fraudsters will look for ways to steal it. As we claim, Mr. Nguyen and Mr. Llacuna promised investors the benefits of the Frosties NFTs, but when it sold out, they pulled the rug out. among the victims, close the website almost immediately and transfer the money.”

Both were charged with conspiracy to launder money and commit fraud, and of setting up a financial fraud scheme to trick investors into putting money into their project. In fact, they were already building another project with supposedly similar intentions called Embers, which, according to the DoJ, would have generated about $1.5 million worth of crypto from the sale.

If the defendants are prosecuted to the fullest extent, Nguyen and Llacuna will be charged separately with conspiracy to commit fraud and money laundering, with each offense carrying up to 20 years in prison.

by means of

Dom Z. – Crypto Analyst, BitDegree

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