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Jafrin Ahmed
Mar 26, 2022
by Jafrin Ahmed

NFT Rugpullers Get Sentenced to 20 Years Prison Over $1.1M Scam

US Department Frosties NFT

Table of contents

  1. DOJ Charges NFT Rug Pullers
The United States Department of Justice (DoJ) has charged 20-year-olds, Ethan Nguyen and Andre Llacuna over conspiracy to commit wire fraud and money laundering which carries a maximum sentence of 20 years in prison, in connection to rugpulling the Frosties NFT project.

DOJ Charges NFT Rug Pullers

According to a Thursday release from the Attorney’s Office of the Southern District of New York, Ethan Nguyen and Andre Llacuna were arrested in Los Angeles in “connection with a million-dollar scheme to defraud purchasers” of the NFTs “Frosties.”

"Mr. Nguyen and Mr. Llacuna promised investors the benefits of the Frosties NFTs, but when it sold out they pulled the rug out from under the victims, almost immediately shutting down the website and transferring the money,” said U.S. Attorney Damian Williams in a press release.

Nguyen and Llacuna are the alleged founders of the Ethereum-based Frosties NFT project that held its mint in January. After selling through the 8,888 NFTs and taking over about $1.1 million worth of ETH in the process, the creators closed down the project’s Discord channel and disappeared with the funds.

This is the first known case of the Department of Justice charging NFT creators with alleged conspiracy to defraud buyers, a potential landmark case in the rising NFT industry, which generated some $25 billion in total trading volume in 2021 alone.

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Frosties NFT Project US Department of Treasury NFT Scam
NFT Rugpullers Get Sentenced to 20 Years Prison Over $1.1M Scam
Jafrin Ahmed
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

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