California Residents Charged in $22 Million Cryptocurrency Fraud Case

Federal prosecutors have revealed charges against California residents Gabriel Hay and Gavin Mayo, accusing them of participating in a $22 million cryptocurrency fraud scheme.
The charges coincide with a report from the FBI indicating that Americans lost more than $5.6 billion to cryptocurrency fraud in 2023, marking a 45% increase from the previous year.
As per ABC News, Hay, based in Beverly Hills, and Mayo, based in Thousand Oaks, allegedly conducted multiple “rugpull” schemes from May 2021 to May 2024. They are also accused of launching NFT projects to lure investors in before abandoning the projects and absconding with the funds.
The U.S. Attorney’s Office has charged both individuals with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Each fraud charge carries a potential 20-year prison term, while the stalking charge could add an additional five years.
The duo, both 23 years old, reportedly promoted various fraudulent projects, including the “Vault of Gems NFT,” and received millions from investors before deserting the projects.
The indictment outlines their efforts to conceal their involvement by falsely attributing ownership of the projects to others. Prosecutors also claim that the defendants initiated a harassment campaign against the project manager and their family.
This case is part of a wider trend in cryptocurrency crime, with the FBI revealing that while crypto-related crimes only make up 10% of financial fraud complaints, they are responsible for nearly half of all financial losses due to scams in 2023.
Investment schemes resembling those allegedly orchestrated by Hay and Mayo caused the highest losses nationwide, totaling $4 billion.