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{"actor":"system:backfill","investigation_id":"c284ee66-29d9-4b22-806a-eaec61a576d1","kind":"publish","page_slug":"frosties-nft","published_at":"2026-05-30T13:00:32.096Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Frosties NFT","sections":[{"content":"","heading":"The Frosties NFT Collection","severity":"critical","sources":[{"credibility":2,"name":"US Justice Dept. Charges 2 in NFT Rug Pull Scheme — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2022/03/24/us-justice-dept-charges-2-in-nft-money-laundering-rug-pull-scheme"},{"credibility":2,"name":"US Justice Dept. Charges Ethereum NFT Project Creators Over Rug Pull — Decrypt","type":"news_article","url":"https://decrypt.co/95931/justice-dept-ethereum-nft-project-creators-frosties-rug-pull"},{"credibility":2,"name":"Frosties NFT investors rug pulled, loses over $1 million — CryptoSlate","type":"news_article","url":"https://cryptoslate.com/frosties-nft-investors-rug-pulled-loses-over-1-million/"}]},{"content":"","heading":"The Rug Pull","severity":"critical","sources":[{"credibility":1,"name":"Two Defendants Charged In Non-Fungible Token NFT Fraud And Money Laundering Scheme — U.S. DOJ SDNY","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"credibility":2,"name":"Tornado Cash Money Launderer Tells Jury How He Pulled Off a $1M NFT Scam — Yahoo Finance / DL News","type":"news_article","url":"https://finance.yahoo.com/news/tornado-cash-money-launderer-tells-215856993.html"},{"credibility":2,"name":"Pair Charged for Orchestrating $1.1M NFT Rug Pull Scam, Plotting Another — Vice","type":"news_article","url":"https://www.vice.com/en/article/pair-charged-for-orchestrating-11m-nft-rug-pull-scam-plotting-another/"}]},{"content":"","heading":"DOJ Arrest and Criminal Charges","severity":"critical","sources":[{"credibility":1,"name":"Two Defendants Charged In Non-Fungible Token NFT Fraud And Money Laundering Scheme — U.S. DOJ SDNY","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"credibility":2,"name":"US Justice Dept. Charges 2 in NFT Rug Pull Scheme — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2022/03/24/us-justice-dept-charges-2-in-nft-money-laundering-rug-pull-scheme"},{"credibility":2,"name":"Police Arrest Two 20-Year-Olds for Allegedly Conning Collectors Out of $1 Million — Artnet News","type":"news_article","url":"https://news.artnet.com/market/frosties-nft-arrest-2090659"},{"credibility":2,"name":"Frosties NFT 20-Year-Old Founders Arrested On Suspicion Of Fraud — NFT Evening","type":"news_article","url":"https://nftevening.com/frosties-nft-20-year-old-founders-arrested-on-suspicion-of-fraud/"}]},{"content":"","heading":"Guilty Plea and Cooperation with Federal Prosecutors","severity":"critical","sources":[{"credibility":2,"name":"Tornado Cash Money Launderer Tells Jury How He Pulled Off a $1M NFT Scam — Yahoo Finance / DL News","type":"news_article","url":"https://finance.yahoo.com/news/tornado-cash-money-launderer-tells-215856993.html"},{"credibility":2,"name":"Axie Infinity Exec, NFT Scammer Testify in Roman Storm Trial — DL News","type":"news_article","url":"https://www.dlnews.com/articles/defi/axie-infinity-exec-and-scammer-testify-in-roman-storm-trial/"},{"credibility":3,"name":"AUSA Closing Statement: Frosties NFT scam and Tornado Cash — Threads (Inner City Press)","type":"social_media","url":"https://www.threads.com/@innercitypressinsta/post/DMvAyJiOpfY/ausa-you-heard-from-andre-llacuna-of-the-frosties-nft-scam-he-didnt-deliver-the-"}]},{"content":"","heading":"Legal Precedent and Enforcement Significance","severity":"high","sources":[{"credibility":2,"name":"The DOJ Pulls the Rug on the Frosties NFT Founders — National Law Review","type":"research","url":"https://natlawreview.com/article/doj-pulls-rug-frosties-nft-founders"},{"credibility":2,"name":"DOJ Charges First NFT Wire Fraud Case — Reed Smith Viewpoints","type":"research","url":"https://viewpoints.reedsmith.com/post/102hlh8/doj-charges-first-nft-wire-fraud-case"},{"credibility":2,"name":"Nelson Mullins — The DOJ Pulls the Rug on the Frosties NFT Founders","type":"research","url":"https://www.nelsonmullins.com/insights/blogs/investigations/doj/the-doj-pulls-the-rug-on-the-frosties-nft-founders"},{"credibility":1,"name":"Two Defendants Charged In Non-Fungible Token NFT Fraud And Money Laundering Scheme — U.S. DOJ SDNY","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"}]},{"content":"","heading":"Community Response and Victim Impact","severity":"high","sources":[{"credibility":2,"name":"The Frosties NFT Rug Pull: How a Rug-Pulled Community Can Pursue Justice — DappRadar","type":"news_article","url":"https://dappradar.com/blog/the-frosties-nft-rug-pull-how-a-rug-pulled-community-can-pursue-justice"},{"credibility":2,"name":"NFT Creators Stole $1.3M From Investors Then Vanished — Blockworks","type":"news_article","url":"https://blockworks.co/news/nft-creators-stole-1-3m-from-investors-then-vanished-sources-say"},{"credibility":2,"name":"Frosties NFT investors rug pulled, loses over $1 million — CryptoSlate","type":"news_article","url":"https://cryptoslate.com/frosties-nft-investors-rug-pulled-loses-over-1-million/"}]},{"content":"","heading":"Investigative Methods: Identifying Pseudonymous Actors","severity":"medium","sources":[{"credibility":1,"name":"Two Defendants Charged In Non-Fungible Token NFT Fraud And Money Laundering Scheme — U.S. DOJ SDNY","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"credibility":2,"name":"The DOJ Pulls the Rug on the Frosties NFT Founders — National Law Review","type":"research","url":"https://natlawreview.com/article/doj-pulls-rug-frosties-nft-founders"},{"credibility":3,"name":"NFT Fraudster Admits Using Tornado Cash to Hide $1.1 Million Rug Pull Proceeds — USA Herald","type":"news_article","url":"https://usaherald.com/nft-fraudster-admits-using-tornado-cash-to-hide-1-1-million-rug-pull-proceeds/"}]}],"sources_used":[{"credibility":1,"name":"Two Defendants Charged In Non-Fungible Token NFT Fraud And Money Laundering Scheme — U.S. DOJ SDNY","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"credibility":2,"name":"US Justice Dept. Charges 2 in NFT Rug Pull Scheme — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2022/03/24/us-justice-dept-charges-2-in-nft-money-laundering-rug-pull-scheme"},{"credibility":2,"name":"US Justice Dept. Charges Ethereum NFT Project Creators Over Rug Pull — Decrypt","type":"news_article","url":"https://decrypt.co/95931/justice-dept-ethereum-nft-project-creators-frosties-rug-pull"},{"credibility":2,"name":"Tornado Cash Money Launderer Tells Jury How He Pulled Off a $1M NFT Scam — Yahoo Finance / DL News","type":"news_article","url":"https://finance.yahoo.com/news/tornado-cash-money-launderer-tells-215856993.html"},{"credibility":2,"name":"Axie Infinity Exec, NFT Scammer Testify in Roman Storm Trial — DL News","type":"news_article","url":"https://www.dlnews.com/articles/defi/axie-infinity-exec-and-scammer-testify-in-roman-storm-trial/"},{"credibility":2,"name":"Police Arrest Two 20-Year-Olds for Allegedly Conning Collectors Out of $1 Million — Artnet News","type":"news_article","url":"https://news.artnet.com/market/frosties-nft-arrest-2090659"},{"credibility":2,"name":"Pair Charged for Orchestrating $1.1M NFT Rug Pull Scam, Plotting Another — Vice","type":"news_article","url":"https://www.vice.com/en/article/pair-charged-for-orchestrating-11m-nft-rug-pull-scam-plotting-another/"},{"credibility":2,"name":"The DOJ Pulls the Rug on the Frosties NFT Founders — National Law Review","type":"research","url":"https://natlawreview.com/article/doj-pulls-rug-frosties-nft-founders"},{"credibility":2,"name":"DOJ Charges First NFT Wire Fraud Case — Reed Smith Viewpoints","type":"research","url":"https://viewpoints.reedsmith.com/post/102hlh8/doj-charges-first-nft-wire-fraud-case"},{"credibility":2,"name":"Nelson Mullins — The DOJ Pulls the Rug on the Frosties NFT Founders","type":"research","url":"https://www.nelsonmullins.com/insights/blogs/investigations/doj/the-doj-pulls-the-rug-on-the-frosties-nft-founders"},{"credibility":2,"name":"Frosties NFT investors rug pulled, loses over $1 million — CryptoSlate","type":"news_article","url":"https://cryptoslate.com/frosties-nft-investors-rug-pulled-loses-over-1-million/"},{"credibility":2,"name":"NFT Creators Stole $1.3M From Investors Then Vanished — Blockworks","type":"news_article","url":"https://blockworks.co/news/nft-creators-stole-1-3m-from-investors-then-vanished-sources-say"},{"credibility":2,"name":"Frosties NFT 20-Year-Old Founders Arrested On Suspicion Of Fraud — NFT Evening","type":"news_article","url":"https://nftevening.com/frosties-nft-20-year-old-founders-arrested-on-suspicion-of-fraud/"},{"credibility":1,"name":"Frosties NFT Scheme Leads to Fraud, Conspiracy Charges — Newsweek","type":"news_article","url":"https://www.newsweek.com/frosties-nft-creators-charged-fraud-conspiracy-1691622"},{"credibility":3,"name":"NFT Fraudster Admits Using Tornado Cash to Hide $1.1 Million Rug Pull Proceeds — USA Herald","type":"news_article","url":"https://usaherald.com/nft-fraudster-admits-using-tornado-cash-to-hide-1-1-million-rug-pull-proceeds/"},{"credibility":1,"name":"United States v. Nguyen, 22-mj-02478 (S.D.N.Y. 2022) — CourtListener Docket","type":"court_filing","url":"https://www.courtlistener.com/docket/63191924/united-states-v-nguyen/"}],"summary":"Frosties was an 8,888-piece Ethereum-based NFT collection themed around animated ice cream characters that launched on January 9, 2022, raising approximately $1.1 million before its creators executed a premeditated rug pull within hours of mint sellout. Ethan Nguyen (pseudonym 'Frostie') and Andre Llacuna (pseudonym 'heyandre'), both then 20 years old, were arrested in Los Angeles in March 2022 and charged with conspiracy to commit wire fraud and conspiracy to commit money laundering in the Southern District of New York, marking the first U.S. federal criminal prosecution of an NFT rug pull. Llacuna subsequently pleaded guilty and testified as a government witness in the Roman Storm Tornado Cash trial, while the case established that existing federal wire fraud statutes apply to NFT fraud schemes.","timeline":[{"date":"2022-01-09","event":"Frosties NFT collection mints 8,888 tokens at 0.04 ETH each, selling out in approximately 43 minutes and raising approximately $1.1 million in ETH.","source":"U.S. DOJ SDNY Press Release","source_url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"date":"2022-01-09","event":"Within hours of mint sellout, Nguyen and Llacuna shut down the Frosties website, deactivate the Discord server, and transfer approximately $1.1 million in proceeds to separate wallets in a premeditated rug pull.","source":"U.S. DOJ SDNY Press Release","source_url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"date":"2022-01-09","event":"Approximately $1 million in Ethereum is deposited into Tornado Cash to launder the stolen funds, according to Llacuna's later testimony.","source":"Yahoo Finance / DL News — Tornado Cash Trial Coverage","source_url":"https://finance.yahoo.com/news/tornado-cash-money-launderer-tells-215856993.html"},{"date":"2022-03-24","event":"Ethan Vinh Nguyen and Andre Marcus Quiddaoen Llacuna are arrested in Los Angeles by HSI and IRS-CI. The SDNY unseals charges: one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering against each defendant. The DOJ describes this as the first U.S. federal criminal prosecution of an NFT rug pull.","source":"U.S. DOJ SDNY Press Release","source_url":"https://www.justice.gov/usao-sdny/pr/two-defendants-charged-non-fungible-token-nft-fraud-and-money-laundering-scheme-0"},{"date":"2022-03-24","event":"At the time of arrest, a second NFT project called 'Embers' — allegedly another planned rug pull projected to raise $1.5 million — was scheduled to launch on approximately March 26, 2022. The project is halted by the arrests.","source":"Pair Charged for Orchestrating $1.1M NFT Rug Pull Scam, Plotting Another — Vice","source_url":"https://www.vice.com/en/article/pair-charged-for-orchestrating-11m-nft-rug-pull-scam-plotting-another/"},{"date":"2023-01-01","event":"Andre Llacuna enters a guilty plea to wire fraud and conspiracy to commit money laundering charges (exact plea date not confirmed in available public sources; reported as having occurred before his 2025 cooperation testimony).","source":"Yahoo Finance / DL News — Tornado Cash Trial Coverage","source_url":"https://finance.yahoo.com/news/tornado-cash-money-launderer-tells-215856993.html"},{"date":"2025-07-01","event":"Andre Llacuna, now 23, testifies as a cooperating government witness in the federal trial of Roman Storm, co-founder of Tornado Cash, in the SDNY. Llacuna describes using Tornado Cash to launder Frosties proceeds and confirms the mechanics of the rug pull scheme. He testifies under an agreement for possible sentence leniency, with sentencing not yet imposed.","source":"Axie Infinity Exec, NFT Scammer Testify in Roman Storm Trial — DL News","source_url":"https://www.dlnews.com/articles/defi/axie-infinity-exec-and-scammer-testify-in-roman-storm-trial/"}]},"v":1}