Two NFT Founders Charged over $1.1M NFT Rug Pull and Money Laundering Scam
Frosties NFT creators rug pulled investors for over $1.1 million.
After selling the NFTs, Ethan Nguyen and Andre Llacuna shut down the project and fled.
Quick take:
- Ethan Nguyen and Andre Llacuna, creators of Frosties NFT rug pulled investors.
- They were charged in a criminal complaint with conspiracy to commit wire fraud and money laundering.
In a recent report, the United States Attorney announced that the creators of Frosties NFT were arrested in an NFT rug pull. Ethan Nguyen and Andre Llacuna rug pulled investors for over $1.1 million.
They sold the NFTs, took down the project, transferred the funds to different crypto wallets leaving the investors hopeless. U.S. Attorney Damian Williams said: “NFTs have been around for several years, but recently mainstream interest has skyrocketed. Where there is money to be made, fraudsters will look for ways to steal it.”
Busted before their new NFT scam launch
Nguyen and Llacuna were set to launch their second set of NFTs named “Embers.” They predicted they’d make $1.5 million in revenue. Thankfully, they were stopped before the launch.
An hour after Frosties' public launch, all 8,888 NFTs priced at roughly $130 per NFT sold out.
The creators dropped the project almost instantly. Trying to resell their NFTs, buyers only earned a few dollars, and they lost hope of seeing promised rewards, such as 3D avatars and Frosties games. The creators have been arrested in Los Angeles, California.
Ethan Nguyen had allegedly messaged a Frosties community moderator as below:
Andre MARCUS QUIDDAOEN LLACUNA and Ethan VINH NGUYEN, aged 20, have been charged with one count of wire fraud under 18 USC § 1349. A maximum sentence of 20 years will apply to each count, and a maximum sentence of 20 years will apply to one count of money laundering conspiracy.
Crypto and NFT rug pull schemes are so common. With the growing adoption of crypto, NFTs, and metaverse, scammers are trying their best to lure investors and leave them stranded.
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