Two crypto swindlers charged in $1.1M NFT fraud before their next scam could launch

Two crypto traders are in HOT water for their role in the $1.1 million “Frosties” NFT scam after the U.S. Department of Justice (DOJ) announced it will be filing charges against the pair.

According to the DOJ, crypto traders Ethan Vinh Nguyen and Andre Marcus Quiddaoen Llacuna were both charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.

Nguyen and Llacuna promoted their “Frosties” NFTs, which gave owners access to giveaways, a metaverse game, and exclusive mint passes to upcoming Frosties seasons, along with a number of other perks.

As a result, Nguyen and Llacuna completely sold out of Frosties in early January. Unfortunately, the opportunity looks to have been too good to be true.

After selling their entire inventory, the pair shut down their website and scrapped the project, but not before transferring about $1.1 million worth of crypto from the project to various wallets they owned.

Just before being arrested in Los Angeles, Nguyen and Llacuna were allegedly gearing up to launch another round of fraudulent NFTs called “Embers.”

Fortunately, they were caught before that could happen, and now both face maximum sentences of 20 years in prison for each felony.

The case highlights an important lesson for investors: always perform your due diligence and research your investment.