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ARTICLE · 01 APRIL 2022

NFT Minters Arrested In Alleged Frosties Utility NFT Scheme

Klein Moynihan Turco LLP
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On March 24, the United States Attorney for the Southern District of New York ("NY") issued a press release revealing that two people had been charged in connection with an alleged "Frosties" non-fungible token ("NFT") scheme.

United StatesTechnology
David O. Klein
David O. Klein
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On March 24, the United States Attorney for the Southern District of New York ("NY") issued a press release revealing that two people had been charged in connection with an alleged "Frosties" non-fungible token ("NFT") scheme. Ethan Nguyen and Andre Llacuna, the individuals that launched the Frosties utility NFT collection, (herein, the "Defendants") were arrested following a joint investigation conducted by the NY offices of the Department of Justice, Internal Revenue Service, Department of Homeland Security, and U.S. Postal Inspection Service. 

The underlying allegations against the Defendants should serve as a cautionary tale to those in the NFT industry. In particular, if minters sell utility NFTs, but refuse to follow through with advertised ownership benefits, they may face serious penalties, including incarceration.

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