Pinellas Park Man and Alabama Man Charged in $300,000 Cryptocurrency Scheme
Pinellas Park, Florida – A Pinellas Park man and an Alabama man have been charged by the U.S. Department of Justice in connection with a cryptocurrency scheme that netted the duo over $300,000. Devin Alan Rhoden, 24, from Pinellas Park, and Berman Jerry Nowlin, Jr., 20, from Huntsville, Alabama, are accused of fraudulently receiving funds from investors around the world through their elaborate scam. The pair allegedly utilized blockchain technology to transfer the cryptocurrency from one platform to another, making it harder to trace the funds.
Rhoden, known by aliases “Denny” and “Deviinz,” and Nowlin, also known as “Repulse” and “Zayous,” are facing charges in the alleged scheme. They are accused of conspiring to create and promote a non-fungible token collection (NFT) called “Undead Tombstone” with the intention of abandoning their obligations to investors. The duo reportedly utilized social media to market the NFT, making misleading claims about its value and potential returns. During the course of their operation from March to May 2022, they minted 632 NFTs, resulting in approximately $135,000 in cryptocurrency finding its way into their digital wallets.
However, before meeting their obligations to investors, Rhoden and Nowlin abruptly abandoned the project, executing what prosecutors have dubbed a “rug pull.” In an attempt to further obfuscate the trail of funds, the duo transferred the cryptocurrency to a different blockchain. Subsequently, they converted the virtual currency into U.S. dollars and funneled the proceeds into their respective bank accounts.
Both Rhoden and Nowlin have been charged with conspiracy to commit wire fraud and money laundering. If convicted, they could face up to five years in prison and would be required to forfeit the illicit proceeds. This case highlights the risks associated with cryptocurrency investments and the importance of due diligence when engaging in such transactions.
Disclaimer: The information provided in this article is based on the official statement released by the U.S. Department of Justice and other reliable sources. Any accusations mentioned are merely alleged until proven guilty in a court of law.
Analyst comment
Negative news. As an analyst, the market may experience decreased investor confidence in cryptocurrency schemes due to fraudulent activity, which could lead to increased scrutiny and regulations in the industry.
