THELOGICALINDIAN - Two NFT creators accept been answerable with artifice afterwards accustomed out a rug pull
The U.S. Department of Amends (DOJ) has charged two individuals complex in the Frosties NFT activity with fraud.
Frosties Creators Carried Out Rug Pull
Frosties creators Ethan Nguyen and Andre Llacuna reportedly defrauded investors of $1.1 actor through their scheme.
The DOJ says that the two individuals agitated out a “rug pull” while affairs their NFTs. The creators awash tokens featuring ice cream-themed collectible characters with assorted attributes. Investors would accept been able to acquire cryptocurrency through staking and breeding. They would accept acquired admission to a broader metaverse game.
However, the two creators did not did bear the allowances and rewards that they initially advertised. After the Frosties NFTs awash out, the creators deactivated the project’s website and beatific the money they becoming to their own cryptocurrency wallets.
Nguyen and Llacuna formed beneath assorted aliases including “Frostie,” “Jakefiftyeight,” “Jobo,” “Joboethan,” “Meltfrost,” and “heyandre.”
Each has been answerable with one calculation of wire fraud, accustomed a best book of 20 years in prison, and one calculation of cabal to accomplish money laundering, which carries a best book of 20 years.
Frosties Tokens Continue to Circulate
Though the DOJ did not accomplish an advertisement until today, the Frosties rug cull took abode months ago on Jan. 9.
Although that accident prevented investors from accomplishment the promised benefits, Frosties NFTs remain in circulation. OpenSea letters that 69.4 ETH ($216,000) of NFTs accept been traded to date.
Also in apportionment is additionally a community-made alternation alleged Wrapped Frosties, which aims to accommodated some of the project’s aboriginal goals. That alternation has broadcast 2.6 ETH ($8,000) to date.
The aboriginal creators additionally planned to barrage a additional NFT band alleged Embers, which was advancing to acquire $1.5 million. It appears that this alternation is still alive beneath a altered team.
Disclosure: At the time of writing, the columnist of this allotment endemic BTC, ETH, and added cryptocurrencies.
