**Multi-Million Dollar NFT Fraud: Gabriel Hay and Co-Conspirator Face Federal Charges Over Alleged Rug Pull Scheme**

Federal prosecutors have charged two California residents with orchestrating one of the most significant NFT-related fraud operations in recent years. Gabriel Hay, 23, and Gavin Mayo are accused of perpetrating coordinated deception across multiple digital asset ventures that collectively defrauded investors of over $22 million.

**The Scheme: How They Operated**

Between May 2021 and May 2024, the defendants allegedly launched a series of NFT projects designed to extract capital from retail investors. Their portfolio of fraudulent initiatives included Vault of Gems, Faceless, and Sinful Souls. The operational playbook was consistent: attract investors through aggressive marketing claims, publish fabricated development roadmaps, and disappear with collected funds—a tactic known in the crypto community as a "rug pull."

Victims were systematically misled about project viability, tokenomics, and timeline for deliverables. Rather than building functional products, the pair strategically liquidated investor capital.

**Harassment and Intimidation Campaign**

When their scheme faced exposure, the situation escalated beyond financial fraud. After a project manager publicly identified Gabriel Hay and his associate, the duo allegedly engaged in targeted harassment and intimidation directed at the whistleblower and his family members—adding additional criminal layers to their operation.

**Federal Response and Legal Jeopardy**

The U.S. Department of Justice has brought charges including conspiracy to commit wire fraud, multiple counts of wire fraud, and criminal stalking harassment. The Baltimore field office of Homeland Security Investigations (HSI) is leading the investigation.

If convicted on wire fraud charges, each defendant faces up to 20 years in federal prison per count. Stalking and harassment convictions carry sentences up to 5 years. The cumulative exposure suggests potential decades of incarceration for both Gabriel Hay and Gavin Mayo.

This case underscores the DOJ's intensifying focus on cryptocurrency fraud and reinforces that NFT manipulators face serious federal consequences.