Two men have been charged by the US Department of Justice with fraud and money laundering in connection with Frosties NFT rug pull. Before vanishing with the money, the 20 years old, allegedly sold NFTs to unsuspecting investors with a litany of promises.
Solana-based Undead Apes NFT was Rugged late Tuesday. The floor price of its collections declined over 70% shortly after the incident.
Noticed an indictment for the second one, what i can't understand 'rugpull = take liquidity/funds'
If i sell you a apple, and i sell other people apples.
And i put some cash in a jar where you can exchange your apple for cash if you are not happy, and after a while, i take the cash as there's no interest in exchanging said sold apples for cash for a return, and between you and the bunch of hillbilly apply lovers you create a 'community' and encourage others to buy whilst holding the supply, and the price rises which you guys sell to people for a higher price than i sold the apple to anyone.
And i take my salary from the revenues of the apple sales.
Then i get bored and move on to a new business or take a week off.
and then the bubble you and your community made bursts.
I am charged with fraud.
> Am i missing something here? because that's essentially what this is (nfts) or is it so stupid.