Federal prosecutors have unsealed an indictment against California residents Gabrielle Hay and Gavin Mayo, accused in a $22 million cryptocurrency fraud scheme.

The accusations come as the FBI reported that Americans lost more than $5.6 billion to cryptocurrency fraud in 2023 — a 45% increase from the previous year.

according to ABC NewsCiting prosecutors, Beverly Hills-based Hay and Thousand Oaks-based Mayo allegedly executed several “Rugpull” schemes between May 2021 and May 2024. They also allegedly created NFT projects to lure investors before giving them away while keeping the funds.

The U.S. Attorney's Office charged both individuals with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. Each fraud charge carries a potential 20-year prison sentence, with the stalking charge adding a possible additional five years.

The pair, both 23 years old, allegedly promoted several fraudulent projects, including a “Vault of Gems NFT,” and collected millions from investors before abandoning the projects.

The indictment describes their attempts to hide their involvement by falsely attributing ownership of the project to others. The prosecution also alleges that the defendants began a campaign of harassment targeting the director and his family.

This case is part of a broader trend in cryptocurrency crime, with the FBI reporting that while cryptocurrency-related crimes account for only 10% of financial fraud complaints, they account for nearly half of all financial losses suffered by Americans due to cryptocurrency fraud. Year 2023.

Investment schemes, similar to those allegedly carried out by Hay and Mayo, caused the largest losses of $4 billion nationwide.