In the United States, two young men have been arrested for embezzling $ 5 million from NFTs

• Two teenagers have been arrested in the United States for embezzling $ 1.1 million from NFT collections;

• Both earned that amount by selling NFTs based on cartoon characters called ‘Frosties’;

• After selling the tokens, the two young men closed the program and transferred the funds to separate cryptocurrency wallets.

Two 20-year-olds were arrested last Thursday (24).

Two defendants, Ethan Nguyen and Andre Llacuna, ‘Frosties.’ By selling NFTs (fungus tokens) based on so-called cartoon characters, he is said to have earned US $ 1.1 million, equivalent to R $ 5.2 million at current prices.

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After selling the tokens, the pair closed the scheme and transferred the funds to separate cryptocurrency wallets as the NFT failed to deliver the promised rewards to the owners.

‘Frosties’ is part of an animated program of 8,888 non-fungal tokens, selling for about $ 130, the equivalent of Ethereum, sold out within an hour of launch.

After the coup, buyers made a few dollars by trying to resell NFTs. Some of the promised rewards include 3D versions of their avatars and a project-based game.

Following the incident, Nguyen also contacted Community Discord server reviewer ‘Frosties’ and sent the unpublished Ethereum an apology for the fraud.

Both are currently incarcerated in Los Angeles, California.

Information from The Verge.