NFT Fraud And Money Laundering Scheme: 2 Defendants Charged 

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Key Takeaways:

  • Two defendants have been charged with money laundering schemes and have scammed NFT purchasers.
  • They were involved in several “rug pulls” as well. 

With news about crypto scams floating around, the regulators have been continuously monitoring the activities in the market. Recently, Ethan Nguyen, aka “Frostie,” and Andre Llacuna, aka “Andre,” have alleged a million-dollar money laundering. Instead of providing the benefits promised to their customers ‘Frosties NFT purchasers’, they transferred all the digital currencies received to their active accounts. 

In a press release from the Attorney’s office, it has been revealed that the defendants were even planning to launch another set of NFTs named “Embers.” They expected to gain almost $1.5 million in cryptocurrencies. 

Damian Williams, the U.S. Attorney for the Southern District of New York, said, “Where there is money to be made, fraudsters will look for ways to steal it.

“Our job as prosecutors and law enforcement is to protect investors from swindlers looking for a payday.” 

The defendants were also involved in “rug pull” scams where they promised investors of significant returns. However, they backed off the deals, eventually scamming the businesses. 

“The trending market and demand for NFT investments have not only drawn the attention of real artists but scam artists as well,” said HSI Acting Special Agent-in-Charge Ricky J. Patel. 

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Shreya Bhattacharya
Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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