The Department of Justice (DOJ) announced that six people involved in four cryptocurrency-related, including the largest known Non-Fungible Token scheme, have been charged.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving Over $100 Million in Intended Losseshttps://t.co/9RUla6pJq5 pic.twitter.com/FWTiMl9NUu
— Criminal Division (@DOJCrimDiv) June 30, 2022
The DOJ said the cases involved cryptocurrency-related fraud, a fraudulent investment fund traded on cryptocurrency exchanges, and a global Ponzi scheme selling unregistered crypto securities and fraudulent initial coin offerings.
The DOJ said Tuan and some unnamed conspirators were involved in the “rug pull” of the NFT collection, stealing $2.6 million from investors.
According to the statement, the accused laundered the funds by converting the token coins into other kinds of cryptocurrencies across multiple blockchains.
DOJ previously charged two individuals in March over the Frosties rug pull. The DOJ accused three individuals, Joshua David Nicholas, Flavio Goncalves, and Emerson Pires, of raising $100 million through a global crypto Ponzi scheme.
The authorities discovered that the accused were laundering the funds through a foreign crypto exchange.
Officials of the Justice Department have said that the department have said that the department is focused on weeding out malicious players from the crypto industry.