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Federal prosecutors have charged California residents Gabriel Hay and Gavin Mayo in connection with a $22 million cryptocurrency fraud scheme. The indictment alleges the two orchestrated multiple “rug pull” scams and abandoned NFT projects while pocketing investor funds.
According to the U.S. Attorney’s Office, Hay, based in Beverly Hills, and Mayo, from Thousand Oaks, executed these fraudulent activities between May 2021 and May 2024. Prosecutors claim the 23-year-olds promoted projects such as the “Vault of Gems NFT,” attracting millions of dollars from investors before abruptly abandoning the ventures.
To evade accountability, the defendants allegedly misrepresented ownership of their projects, falsely attributing them to others. Furthermore, the indictment accuses the pair of engaging in harassment tactics, targeting a project manager and their family.
Both individuals face charges of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Each wire fraud count could result in a 20-year prison sentence, while the stalking charge carries an additional five-year penalty.
The case highlights a troubling trend in cryptocurrency-related crimes. The FBI reports Americans lost over $5.6 billion to crypto fraud in 2023, reflecting a 45% increase from 2022. While crypto crimes represent just 10% of financial fraud complaints, they account for nearly half of all financial losses.
Investment scams, like those allegedly carried out by Hay and Mayo, remain the most damaging. Such schemes caused approximately $4 billion in losses across the U.S. last year.