Two individuals in the United States have been convicted of fraud after launching several successful NFT collections. The U.S. Department of Justice confirmed that 21-year-old Berman Jerry Nowlin Jr. and 25-year-old Devin Alan Roden, both creators of collections on the Solana blockchain, used deceptive practices to profit from sales.
Fraudulent Activities
Nowlin managed the technical aspects of the collections, while Roden promoted sales through platforms such as Discord and X. Their tokens quickly gained popularity; for instance, the UndeadApes collection surged in value from $5 to $360 per token.
Building on the success of their previous collections, the duo launched a new series called Undead Tombstone in April 2022. During the promotion phase, they claimed potential partnerships and additional investments, creating a false impression about the project.
On April 19, Nowlin and Roden minted 632 tokens, shut down the project, withdrew investor funds, and deleted their accounts on Discord and X. The stolen funds, approximately $135,000, were converted to Ethereum, exchanged for dollars, and deposited into a bank account. Across all projects, the duo netted around $400,000.
Legal Consequences
In May 2024, Roden pleaded guilty, and his sentencing is scheduled for November 20. Nowlin, still under investigation, faces up to five years in prison.
Related Cases
In a separate incident, the Massachusetts Attorney General charged Alexey Andryunin, founder of Gotbit, with crypto market manipulation and fraud.
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