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Frosties NFT Creators Charged With ‘Rug Pull’ Investor Fraud

  • Defendants allegedly made off with $1 million within hours
  • Fraud tied to NFTs has surged with popularity of crypto assets
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Two 20-year-old Los Angeles men were charged with defrauding investors of more than $1 million by creating a series of NFTs and abandoning the project after selling out of the tokens.

Federal prosecutors in New York on Thursday charged Ethan Nguyen and Andrew Llacuna with wire fraud and conspiracy to commit money laundering. According to the government, the two created a series of non-fungible tokens called “Frosties,” which were supposed to grant purchasers the exclusive rights to giveaways, a metaverse-based game, and passes to future seasons of the NFTs.