NY: A million-dollar scheme to defraud purchasers of Non Fungible Tokens or #NFTs advertised as “Frosties.”

👀Little guy looks cute enough, right?

🛑Not so fast according to a U.S. Department of Justice criminal complaint filed this week in New York.

🔎According to the complaint, Ethan Nguyen and Andre Llacuna were arrested and charged with conspiracy to commit wire fraud and conspiracy to commit moneylaundering, in connection with a million-dollar scheme to defraud purchasers of Non Fungible Tokens or NFTs advertised as “Frosties.”

💰The scheme, known as a “rugpull” is a type of scam in which creators quickly cash out after launching what appears to be a legitimate crypto project.

🖼NFTs are digital representations of artwork, sports cards, or other collectibles tied to a blockchain

😱Illicit actors who participate in NFT rug pulls take advantage of the lack of regulation in the crypto space, misinformation, shilling, and the fear of missing out FOMO.

👮🏽To combat illicit actors, Blockchain Intelligence Group, provides the tools and works with police agencies from local municipal agencies to international federal agencies to track and trace the flow of illicit cryptocurrency transactions from NFT rug pulls to the sale of counterfeit pills containing fentanyl to illegal guntrafficking. Want to put these tools in your toolbox?

🕵️Great work by the IRS Criminal Investigation, U.S. Department of Homeland Security, and U.S. Postal Inspection Service identifying these violators and stopping them before they could harm more people.

For an in-depth look at the investigation, here is a copy of the complaint


National Association of Drug Diversion Investigators Federal Tax ID: 52-1660752 / DUNS Number: 073539913

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