- A Solana NFT developer will have to face the United States Department of Justice, as they think he has pulled a rug pull fraud.
- As per the press release of the Department of Justice, they will be going after 6 individuals alleged to have been involved in various crypto frauds.
- Hackers in the cryptocurrency space are increasing day by day along with the growth of the sector, making it attractive for unethical elements.
Department Of Justice Is On Fire
As per the press release, the DOJ will be going after a 26year Vietnamese individual who they think is involved in a NFT fraud scheme.
They say that the individual initiated the concept under the name Baller Ape Club, where folks made investments in the NFT collection, only to find out that everything was fake as the Vietnamese national deleted the website and got away with the investors’ money.
The Department of Justice officially called the event a rug pull, and now they are going after the individual.
Reportedly, the owner of the fake project Baller Ape Club ran away with $2.6 Million gathered from the investors. The culprit in this scene might even get sentenced to 40 years in prison if caught.
The press release also included fraud cases of Ponzi scheme and wire frauds.
In the Ponzi scheme, the culprits were involved in a fraud consisting of $100 Million from the victims. Another case involved a fraudulent ICO offering, piling up around $21 Million from the investors.
One crypto fraud involved a commodity pool, where the owner of the project deceived the investors in thinking that they were gonna generate a yield of 500% to 600% by making investments in his project.
How Not To Get Trapped In These Schemes?
Hackers are getting increasingly active in this gowing crypto market. They offer some mouth watering schemes as their bait to the victims, where many investors avoid, but many are hooked into these false schemes.
Though there are hackers in the space, we too can take precautions. Folks should conduct a thorough research regarding any new project launched in the market, especially if it is offering some out of the world profit percentage.
You should always make use of trusted platforms. For example in the case of making investments in NFT, like OpenSea, Rarible and Solanart are among the most trusted platforms for trading and minting NFTs.
Source: https://www.thecoinrepublic.com/2022/07/02/department-of-justice-going-after-a-solana-nft-dev-for-unproven-rug-pull/