The creators of Frosties non-fungible tokens (NFTs) project that suffered a rug pull in January have been arrested and charged with conspiracy to commit wire fraud and money laundering by the United States Department of Justice.

Creators of Frosties NFTs Ethan Nguyen, aka Meltfrost or Jakefiftyeight, and Andre Llacuna, aka heyandre, were both charged for allegedly defrauding investors and profiting $1 Million from the NFT fraud scheme.

According to a press release by the Department of Justice, the two defendants allegedly promoted Frosties NFTs, promising future benefits and utilities but shut down the website and all communication channels as soon as the NFT sold out and allegedly absconded with proceeds running into a million dollars.

In the last 24 hours, bitcoin has been up by 2.8%, with a current price of $44,792.44 as of the time of writing this. Within 24 hours, bitcoin experienced a $43,531.63 low and $44,999.16 high. The trading volume of bitcoin in the last 24 hours is $27,625,086,556. The current market capitalization of bitcoin is $850,765,171,153. Currently, $18.99M bitcoins are in circulation.

Stats and Image from Coin Gecko

U.S. Attorney Damian Williams said they took advantage of the booming NFT markets and mainstream interest to defraud their victims.

“NFTs have been around for several years, but recently mainstream interest has skyrocketed. Where there is money to be made, fraudsters will look for ways to steal it. Our job as prosecutors and law enforcement is to protect investors from swindlers looking for a payday,” he said.

Before they were arrested, Ethan and Andre were in the middle of launching another NFT project called Embers, potentially generating $1.5 million in cryptocurrency proceeds.