Two men arrested for $1.1 million NFT ‘rug pull’ scam

with fraud and money laundering over a cryptocurrency “rug pull” scheme. Ethan Nguyen and Andre Llacuna allegedly earned around $1.1 million by selling non-fungible tokens based on cartoon-like characters called “Frosties.” After selling the NFTs, they shut down the project and transferred its funds to a series of separate crypto wallets, leaving Frosties owners bereft of promised rewards.

The Frosties operators apparently remained confident enough to plan a follow-up series called “Embers” that was supposed to launch later in March. Embers’ roadmap included a $50,000 charity donation and a community-controlled wallet that would hold a quarter of the initial sales funds — and while the Red Cross confirmed receiving the donation, the latter promise appears far more dubious.

But among other details, investigators matched Nguyen and Llacuna’s Discord account data with corresponding accounts on the Coinbase cryptocurrency exchange. The Coinbase accounts were linked with a Citibank credit card and government ID that let law enforcement track the pair down. Investigators also traced a series of transfers through which Nguyen and Llacuna allegedly tried to obscure where they were sending the Frosties funds, leading to the money laundering accusations.

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2 people stole a 1.1 million jpeg. (what a title for the news)

Nft bros deserve to be scammed 😂

I think it goes without saying but make sure not be out here pulling scams people. It maybe easy money in the beginning but in the end it is not worth.

Please check out my NFT

wait rug pull is illegal?

Hey guys. If you are looking a brand new p2e with promising potential I strongly suggest for you to check Crypto Golf Impact.

It was about time. I hope more are caught.

They'll find you when you use government ID, banks, forget to use a VPN, and use a crypto exchange. Most people are not masterminds in crime, and it all ends the same for them. If you end up in a rug pull, the perps won't get away.

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Mac is hungry for justice. Good stuff.

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And the thing is opensea does not even care…

It took this for people to pay attention. The Scammers have been wrecking havoc in the Space for the longest time. twitter TwitterSafety opensea discord not doing much to stop it either. We have a Long Long List of Scams + Usernames operating freely every single day.

$1.1 million and they can't or won't mess with Ring and IGO folks.

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Another day another NFT rug pull

this is huge af, thank you TheJusticeDept for cleaning the NFT space

Good job!

I want a documentary series about this scheme.

small Donger energy

Very nice project

Very nice

CoinersTakingLs here you go

just waiting for the CallMeKiraLoL episode on this :D

👍

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Two U.S. men arrested for $1 mln non-fungible token 'rug pull' schemeTwo men were arrested and charged with scamming buyers of non-fungible tokens (NFTs) worth $1.1 million, authorities said on Thursday, in what appeared to be the first U.S. federal criminal case involving the class of digital assets whose popularity exploded last year.
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Feds Charge Two 20-Year-Olds In Alleged NFT Money Laundering, ‘Rug Pull’ SchemeThe pair’’s “Frosties” project took in $1.1 million before the founders absconded with the funds, prosecutors say.
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