Two Men Charged With Defrauding Investors of $22 Million Through 'Rugpull' NFT and Cryptocurrency Projects

Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, are accused of creating and abandoning multiple NFT and cryptocurrency projects

Two Southern California men have been federally indicted on charges of defrauding investors out of more than $22 million through fraudulent digital asset projects, authorities announced Monday.

Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, are accused of creating and abandoning multiple NFT and cryptocurrency projects, promising big returns while keeping their funds.

The defendants are facing charges of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking, according to the U.S. Attorney’s Office. Arraignments are scheduled for Monday afternoon in United States District Court in Los Angeles.

According to court documents, Hay and Mayo allegedly launched several NFT and cryptocurrency projects between May 2021 and May 2024, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin.

The duo presented fabricated project roadmaps and promotional material, falsely claiming their projects had unique features and long-term viability, the indictment alleges.

For example, in the Vault of Gems NFT project, the defendants claimed it would be the “first NFT project to be pegged to a hard asset,” according to the indictment. However, prosecutors allege that instead of pursuing the project, Hay and Mayo abandoned it after collecting millions from investors.

The indictment also accuses the defendants of concealing their involvement by misrepresenting project ownership and using other individuals as fronts.

In addition to defrauding investors, Hay and Mayo allegedly went after an individual who tried to expose their roles in the Faceless NFT project, according to authorities. Prosecutors allege the defendants initiated a harassment campaign against the whistleblower and their family, causing emotional distress.

If convicted, Hay and Mayo each face up to 20 years in prison on each conspiracy and wire fraud count, and up to five years for the stalking charge.

The case was investigated by the Homeland Security Investigations (HSI) Baltimore Field Office. Assistant U.S. Attorney Maxwell K. Coll and Justice Department Trial Attorneys Tian Huang and Tamara Livshiz, both of the National Cryptocurrency Enforcement Team (NCET), are leading the prosecution.

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