The US Justice Department (DoJ) has been looking for NFT series creators Ethan Nguyen and Andre Llacuna since a complaint was filed earlier this year. Both of them were arrested from Los Angeles on March 24. “Instead of giving the advertised benefits to the purchasers of Frosties NFTs, both of them transferred the cryptocurrency proceeds from its sale to their cryptocurrency wallets,” the DoJ said in a statement.
NFTs or non-fungible tokens are digital collectibles built on the blockchain. These can be associated with music, cartoon videos and artworks. NFT has a resale value. Along with this, their holders often get rewards too. Frosties purchasers were promised benefits such as early access to a Metaverse game and an exclusive pass for the upcoming Frosties season.
The US Treasury Department is starting a campaign to inform people about the risks associated with the crypto segment. The Department’s Financial Literacy Education Commission will prepare the material and educate people about the working of crypto assets and the risks associated with it. Treasury Undersecretary Nellie Liang recently said, “The number of people buying crypto assets is increasing and we know the complicated way some of these work. It seemed like it would be useful to raise awareness about this.” ” Regulators fear that increasing popularity of crypto assets could pose risks to the financial system. According to research from the University of Chicago, about 14 percent of Americans invested in digital assets last year. The regulators of the European Union have also warned those investing in cryptocurrencies.
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