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ARTICLE · 22 JULY 2022

DOJ Charges Six Individuals With NFT Fraud

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On June 30, the DOJ charged six individuals in four separate cases for a fraudulent NFT trading scheme.

United StatesTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Gabriel Khoury
Gabriel Khoury
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On June 30, the DOJ charged six individuals in four separate cases for a fraudulent NFT trading scheme.

The first case alleged that an individual committed wire fraud and engaged in a conspiracy to commit international money laundering in connection with a high-profile NFT. The individual charged allegedly engaged in a "rug pull," by ending the NFT project, deleting its website, and retaining all of the investors' money. The DOJ also alleges that the individual laundered investors' funds through "chain-hopping," a form of money laundering in which one type of coin is converted to another type, and funds are moved across multiple blockchains and crypto mixers totaling $2.6 million from investors.

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