The FBI will notify victims of a $1.1 million fraud scheme through NFTs after the founder pled guilty to using the funds to fund his online gambling habit.
The Federal Bureau of Investigation is set to use non-fungible tokens (NFTs) to return $1.14 million in funds to victims involved in a crypto fraud scheme that began with the launch of a sham project called CluCoin in 2021.
According to an Aug. 21 statement from the US Attorney’s Office in Florida, 40-year-old Austin Michael Taylor pled guilty to wire fraud on Aug. 15 for routinely using investor funds intended for his CluCoin (CLU) project to fund his online gambling habit.
The FBI will provide notice to “identified victims” of the planned restitution through their NFTs — marking one of the first times law enforcement has publicly stated it will use NFTs to contact victims.
