Mar. 24 NFT Recap | DOJ Charges Frosties NFT Founders With Wire Fraud and Money Laundering

Mar. 24 NFT Recap | DOJ Charges Frosties NFT Founders With Wire Fraud and Money Laundering

Top News Today:

  • DOJ Charges Frosties NFT Founders

  • Top NFT Movers

DOJ Charges Frosties NFT Founders

The Department of Justice has charged Ethan Nguyen and Andre Llacuna, founders of Frosties NFT, with money laundering and wire fraud by U.S. prosecutors in possibly the first "rug pull" case. 

The two, who operate under the pseudonyms “Frostie, Jakefiftyeight, Jobo, Joboethan, Meltfrost" and “heyandre," are facing a potential sentence of 20 years in prison thanks to a scheme that defrauded investors of roughly $1M.  

In a statement released by the DOJ U.S. Attorney’s Office, prior to their arrest Nguyen and Llacuna were planning to "launch the sale of a second set of NFTs advertised as “Embers.”

The sale would have generated approximately $1.5M in cryptocurrency proceeds.

The legal case is founded on the abrupt abandonment of the Frosties NFT project that launched in January.

Prior to its launch, purchasers were told they would be eligible for rewards such as allowlist spots, access to a metaverse game, and other giveaways.

On Jan. 9, 2022 Nguyen and Llacuna sold out the project, and then deactivated the Frosties website while transferring out approximately $1.1M to various wallets in an apparent attempt to obstruct the tracing of their funds.

Top NFT Moversundefined

  • Azuki has exploded over the last 24 hours with speculation surrounding its upcoming live event March 30. Volume swelling above 5,500 ETH and gaining a solid 24% floor price, the community is wondering what might be in store next for Azuki. 

  • Mutant Ape Yacht Club also sees a nice uptick in volume yesterday gaining ~84% and bringing the floor up a tiny bit with it. The NFT ecosystem has seen a little more price action this week despite Yuga news slowly dying down.

  • Bored Ape Yacht Club follows suit with the Mutants gaining a nice 26% in volume floor has remained around 102 ETH as we await the release of the "Otherside."

  • Check out Lucky Trader's full NFT project rankings here

  • Disclaimer: Lucky Trader is not a registered investment advisor. You understand that the service is furnished for your personal noncommercial, information, purpose only. No mention of an NFT in the service constitutes as a recommendation to buy, sell, or hold that or any other NFT. Nothing within the service shall, or is intended to, constitute financial, legal, accounting, or tax advice. Any decision that you make to buy, sell, or hold an NFT should be based on an assessment of your risks in consultation with your personal advisers. 
Disclaimer: The author or members of the Lucky Trader staff may own NFTs discussed in this post. Furthermore, the information contained on this website or the Lucky Trader mobile application is not intended as, and shall not be understood or construed as financial advice. AI may have assisted in the creation of this content.