Gabriel Hay and Associate Charged in $22 Million NFT Rug Pull Scam

The U.S. Department of Justice has moved forward with serious charges against Gabriel Hay, 23, and Gavin Mayo in connection with an elaborate fraud scheme targeting cryptocurrency investors. The two men, based in Southern California counties of Beverly Hills and Ventura, allegedly orchestrated multiple deceptive digital asset projects that collectively defrauded victims of over $22 million between May 2021 and May 2024.

Multi-Project Deception Spanning Over Three Years

Gabriel Hay and his associate established several NFT ventures designed to manipulate unsuspecting investors. The projects—Vault of Gems, Faceless, and Sinful Souls—utilized a classic “rug pull” approach, where creators generate hype through misleading marketing and fabricated development roadmaps before abandoning the projects and absconding with investor funds. Each project was carefully crafted with false promises to attract retail investors searching for the next major cryptocurrency opportunity.

The prosecution revealed that Gabriel Hay and Gavin Mayo employed professional-grade deception tactics, including elaborate promotional materials and unrealistic project timelines, to lure capital into their schemes. The systematic nature of their operation—launching multiple projects over a three-year period—demonstrates a coordinated effort rather than isolated incidents.

From Fraud to Intimidation and Witness Harassment

What escalated the case beyond typical financial crimes was the defendants’ response when their identities were exposed. After a project manager publicly revealed Gabriel Hay and Gavin Mayo’s involvement, the two men allegedly directed threats and intimidation campaigns against the whistleblower and his family members. This secondary offense adds stalking harassment charges to their growing legal burden and demonstrates a pattern of aggressive behavior to silence potential witnesses.

Facing Serious Federal Charges and Substantial Prison Sentences

Gabriel Hay faces prosecution under multiple federal statutes including conspiracy to commit wire fraud, wire fraud itself, and stalking harassment. Each wire fraud count carries a maximum sentence of 20 years in federal prison, with the same penalty applying to the conspiracy charge. The stalking harassment convictions carry up to 5 years per count. If convicted on all counts, Gabriel Hay could potentially face decades of incarceration.

The U.S. Homeland Security Investigations (HSI) Baltimore field office is leading the investigation into this case, coordinating with federal prosecutors to build a comprehensive evidence package. The outcome of this prosecution will likely influence how federal authorities approach future NFT-related fraud cases and serve as a cautionary tale for both creators and investors in the digital asset space.