Two South Californian Men Indicted for $22M Crypto Fraud

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A federal grand jury has unsealed a six-count indictment against Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, charging them with defrauding investors of more than $22 million through fraudulent digital asset projects known as “rugpulls.”

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Hay and Mayo are accused of creating and abandoning multiple NFT and cryptocurrency projects, misleading investors with false promises while retaining their funds. The defendants face charges of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Arraignments are scheduled for this afternoon in United States District Court in Los Angeles.

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

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

One notable example cited is the Vault of Gems NFT project, where the defendants claimed it would be the “first NFT project to be pegged to a hard asset.” However, the indictment alleges that instead of pursuing the project, Hay and Mayo abandoned it after collecting millions from investors.

The indictment further accuses Hay and Mayo of concealing their involvement by misrepresenting project ownership and using other individuals as fronts.

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

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If convicted, Hay and Mayo each face up to 20 years in prison on each conspiracy and wire fraud count, along with 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.