According to federal prosecutors, two men from California, Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Palms, have been accused of orchestrating a $22 million cryptocurrency scam.
The pair allegedly targeted unsuspecting investors through fraudulent crypto and NFT schemes, promising significant returns but ultimately abandoning the projects after collecting funds.
Accusations of Fraudulent Crypto Projects
Prosecutors allege that Hay and Mayo carried out their scheme between May 2021 and May 2024. They reportedly engaged in “rug pulls,” a tactic in which developers of cryptocurrency projects abruptly withdraw investor funds and abandon the venture. One of the most notable scams was their NFT project, Vault of Games. The suspects claimed that Vault of Games would be the first NFT project tied to a hard asset and partnered with jewellers globally. These claims were later proven false.
Concerns about the project surfaced in late 2021 when the Vault of Games’ X (formerly Twitter) account posted vague updates, prompting investors to question the project’s state. Disgruntled investors accused the developers of deleting their Discord channel and stealing community funds, leaving them without answers or returns on their investments.
Linked to multiple rug pull schemes
In addition to Vault of Games, prosecutors connected Hay and Mayo to other fraudulent crypto projects, including Faceless, Sinful Souls, Dirty Dogs, Uncovered, Roost Coin, Clout Coin, and MoonPortal. Authorities allege that the pair consistently deceived investors transferred stolen funds to their wallets, and abandoned projects without fulfilling promises.
Nicole Argentieri, Principal Deputy Assistant Attorney General for the Department of Justice (DOJ), denounced the crimes and highlighted the risks posed by emerging financial technologies. She emphasized the DOJ’s commitment to protecting investors and prosecuting those involved in fraudulent activities in the crypto and digital asset space.
Harassment allegations and legal consequences
In addition to financial crimes, Hay and Mayo face accusations of harassment. Prosecutors claim the duo stalked and threatened a former project manager who exposed one of their schemes. They allegedly sent threatening messages, posed as fake lawyers, and even made false accusations against the manager’s family to intimidate him into retracting his claims.
Hay and Mayo are charged with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. If convicted, they could face up to 25 years in federal prison. Authorities reaffirmed their commitment to holding such offenders accountable and safeguarding investors in the evolving digital financial landscape.