Two individuals have been charged with a $1.1 million NFT ‘Rug and Pull’ scheme

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The price of popular NFTs for hundreds of thousands of dollars has been high.

Propriate purchasers can profit from this desperation to try to sell fakes, mislead purchasers, or, in some instances, outright hack and steal NFTs.

NFTs are a means of transferring online information like a photo or a recording, an acronym for a nonfungible token.

Many people are connected to or, but many are images that do not necessarily mean much on their own, as a result of investor interest (and, as a result, scammers).

Last month, hackers attempted to obtain access to users’ NFTs only to get $1.7 million in private equity.

THIS TIME, WHAT’S THE SCAM?


On Thursday, the Southern District of New York announced that two men were involved in a “rug and pull program” that frauded NFT owners of about $1.1 million.

Ethan Vinh Nguyen, 20, and Andre Marcus Quiddaoen Llacuna, 20, have been arrested and charged with wire fraud and conspiracy to retaliate money laundering.

THESTREET RECOMMANDS THAT EVERYBODY ELSE HAVE A SEAT.


NFTs, reportedly created by men, were named “Frosties,” and promised prospective purchasers everything from large returns to early access to the metaverse.

The most popular cryptocurrency token strategy in which scammers promise skyrocketing returns only to take the funds and abandon the project is the one that is booming among investors.

These recent arrests are the first such federal criminal case in the United States.

Nguyen and Llacuna reportedly refunded the project after transfering $1.1 million in assets to cryptocurrency wallets they owned.

“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 transfering the money,” said US Attorney Joe Williams.



WATCH OUT FOR SUCH SCAMS.


Many individuals who seek to make a profit are eligible to take advantage of the NFT market, which is expected to generate around $25 billion in 2021.

While we may be slowly dismantling from this craze Google Trends data shows that searches for “NFT” took place since the start of 2022 authorities are warning about the possibility for equities from those who seek to attract in buyers by promising excellent returns.

Two individuals have been charged with a $1.1 million NFT ‘Rug and Pull’ scheme

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