Giovanni Tomás David Caroglio, an alleged architect behind the Generation Zoe metaverse scheme, was arrested in Mendoza, Argentina, on July 7th. His apprehension followed a series of raids across the city. Public Prosecutors, acting on an investigation by the Cybercrime Specialised Prosecution Unit (UFECI), claim Caroglio spearheaded a "mega-scam focused on the metaverse."
Caroglio reportedly operated several metaverse frauds. Authorities specifically targeted him for a scheme known as "Crypto Country." This operation advertised itself as a "digital land sale" to investors. Simultaneously, it promised passive returns, supposedly generated from stock trading.
No actual trading occurred in Crypto Country. So far, thirty victims have come forward, reporting combined losses of approximately $800,000. Prosecutors are now seeking access to Crypto Country's financial records. This access aims to determine the full scope of victims and total financial damages.
Records from Crypto Country could also illuminate Caroglio's specific involvement with Generation Zoe. Investigators have also charged Ignacio Manduca and Chilean national Hans Dieter Breuer Vargas as alleged accomplices. Caroglio's brothers, Genaro and Gitanjali, are also considered suspects in the ongoing investigation.
Caroglio worked with Leonardo Cositorto on Generation Zoe's "Zoe Paradise" metaverse grift, according to documentation compiled by Javier Smaldone. Generation Zoe initially functioned as a smart-contract Ponzi scheme. The organization began introducing its metaverse grifts in early 2022, toward the end of its active period.
Leonardo Cositorto, Generation Zoe's founder, was arrested in the Dominican Republic in April 2022. He faces multiple counts of fraud and remains in custody awaiting trial.