Web3🌕Monday Unfolds: $22M NFT Scam, Bitcoin’s Big Drop, and Interpol’s Crypto Crackdow

The Web3 world is buzzing with major updates today! From a $22M NFT scam unraveling to Interpol issuing a red notice for Hex founder Richard Heart, there’s no shortage of drama in crypto. HyperLiquid faces a $60M USDC withdrawal storm amid a North Korea probe, and Bitcoin experiences its sharpest weekly decline since the Trump era. Let’s dive into these unfolding stories shaping the crypto landscape!

1. NFT Rug Pull: Scammers face charges over a $22M Ethereum & Solana scheme.

The Department of Justice has charged California men Gabriel Hay and Gavin Mayo in the largest NFT rug pull scheme ever prosecuted, totaling $22 million in losses. From 2021 to 2024, the duo promoted fraudulent NFT projects on Ethereum and Solana, including Vault of Gems and Sinful Souls, using false claims and misleading roadmaps. Investors were lured with promises tied to real-world assets, only to be left empty-handed. The indictment also revealed harassment of a whistleblower who exposed their fraud. Facing up to 20 years in prison per conspiracy and wire fraud count, this case highlights growing crypto scams.

Ethereum and Solana NFT Scammers Charged in $22 Million Rug Pull Scheme - Decrypt

California men Gabriel Hay and Gavin Mayo were charged by the Department of Justice over a series of alleged NFT investment scams.

DecryptJason Nelson

2. Interpol Alert: Hex founder Richard Heart wanted for tax evasion & assault.

Interpol issued a Red Notice for Richard James Schueler, founder of Hex and PulseChain, over tax fraud and assault allegations. Finnish authorities claim he evaded hundreds of millions in taxes. Schueler is also accused of assaulting a teenager and raising $1 billion through unregistered securities. Despite legal challenges, Schueler remains active online, dismissing the charges. The Red Notice and the legal pressures have caused Hex's value to drop by 25%. While Schueler claims to focus on philanthropy, his legal troubles and the ongoing investigation have made his public standing increasingly complicated.

Interpol Issues Red Notice for Hex Founder Richard Heart Over Tax Evasion Worth Hundreds of Millions and Assault Allegations

Interpol has issued a Red Notice for Richard James Schueler, also known as Richard Heart, founder of Hex and PulseChain, over allegations of tax fraud and assault.

Yahoo NewsDecentralized Dog

3. HyperLiquid Exodus: $60M in USDC exits amid North Korea probe.

North Korean-linked addresses have reportedly tested the decentralized exchange HyperLiquid, resulting in a $60M outflow of USDC. Observers suggest the hackers, known for their persistent tactics, are familiarizing themselves with the platform’s operations to potentially launch a more significant attack. Despite these activities, the exchange’s deposit bridge still holds $2.2 billion in USDC. The hackers have accumulated losses over $700,000, signaling they are not trading but rather testing HyperLiquid. This comes as the platform’s token, HYPE, surged 600%, reaching a market cap of $10 billion. HyperLiquid has yet to comment on the situation.

Perp-Focused HyperLiquid Experiences Record $60M in USDC Net Outflows

North Korea-linked addresses, said to be possibly testing the exchange for weaknesses, have accrued losses exceeding $700,000, according to one observer.

CoinDeskOmkar Godbole

4. Bitcoin Dip: Biggest weekly fall since Trump’s election.

Bitcoin saw a 10% drop after hitting an all-time high of $108,135 on Dec. 17, closing at $94,645 on Dec. 22. The decline followed the U.S. Federal Reserve’s decision to reduce the number of interest rate cuts for next year, leading to a less favorable economic outlook for risk assets like Bitcoin. Despite the pullback, asset management firms Bitwise and VanEck predict Bitcoin could soar to $180,000 to $200,000 in 2025, fueled by institutional adoption and a pro-crypto U.S. administration. Most experts anticipate a friendlier crypto regulatory environment in the near future.

Bitcoin sees first major weekly price decline since Trump’s election win

Bitcoin closed down 10% on the week after the Federal Reserve shared slimmer rate cut projections for 2025 than anticipated.

CointelegraphBrayden Lindrea

As the Web3 landscape evolves, each headline serves as a reminder of the opportunities and challenges in this dynamic space. From legal crackdowns to market shifts, staying informed is more important than ever. Whether it's uncovering scams, navigating regulations, or watching market trends, these stories shape the future of crypto. Stay tuned for more updates, and keep your eyes on the blockchain horizon!

WEB3 AI ML