In wake of going after the rug-pulling founders of Frosties NFT back in March, America’s Department of Justice (DoJ) is now filing criminal charges against the founders of four other fraudulent NFT projects.
For now, three of the projects remain undisclosed, however, the fourth is reported to be the PFP NFT project ‘Baller Ape Club’.
The founder behind Baller Ape Club NFT is Vietnamese national Le Anh Traun, who now faces charges of ‘conspiracy to commit wire fraud’ and ‘conspiring to commit international money laundering’- which collectively could land him in 40 years of prison time.
The charges come as Traun allegedly committed a practice known as chain-hopping, wherein shortly after collecting a reported $2.6 million from the project’s mint, they deleted its website before going on to launder the funds by converting them into different cryptocurrencies and moving them across different blockchains.
With regards to the most important parties in the case, the victims, the DoJ has advised all users affected by scam projects to visit its website in order to identify themselves.
Check out the DoJ’s Frosties NFT case here.
