The Department of Justice (DOJ) has taken action against an alleged nonfungible token (NFT) rug pull after it slapped the founders of the “Frosties” project with charges relating to fraud and money laundering.
The two founders are accused of purposely concealing their identities to operate a rug pull on the Frosties community by failing to deliver on the project’s roadmap and “utility,” which touted rewards for NFT hodlers, giveaways, access to a metaverse game and exclusive access to future mints from the project.
According to a Thursday release from the Attorney’s Office of the Southern District of New York, 20-year-olds Ethan Nguyen and Andre Llacuna were arrested in Los Angeles and both charged with one count of wire fraud and one count of conspiracy to commit money laundering in “connection with a million-dollar scheme to defraud purchasers” of the NFTs “Frosties.”
How do you feel about the Department of Justice's actions against Crypto Fraudsters and NFT Rugpullers
