Mutant Ape Planet" NFT Creator Pleads Guilty to $3M Fraud, Faces Five Years in Jail
Summary:
Aurelien Michel, a French national and creator of a counterfeit 'Mutant Ape Planet' NFT (Nonfungible Token) series, has pleaded guilty to committing electronic fraud in a New York federal court. Michel confessed to executing a "rug pull," a scam that defrauded investors of $3 million via the fraudulent NFTs. He's facing up to five years in prison and agreed to pay $1.4 million in restitution. The Mutant Ape Planet project, which was modeled after Yuga Labs' initiative and once boasted 6,797 NFTs produced on the Ethereum blockchain, has since been removed from OpenSea platform.
The individual behind the counterfeit NFT (Nonfungible Token) series, Mutant Ape Planet, modeled after Yuga Labs' Mutant Ape Yacht Club initiative, has admitted to scheming to defraud through electronic means at a New York federal court. Aurelien Michel, a French national, is recognized by the Eastern District of New York's U.S. Attorney’s Office as having executed a scam known as a "rug pull." He has confessed to swindling $3 million from investors through the fraudulent Mutant Ape Planet NFTs.
According to prosecutors from the Department of Justice (DOJ), Michel and his associates artificially increased the demand for the collection by deceiving investors with false benefits and rewards promises. It was cited that they deliberately failed to fulfill these promises, channeling millions worth of profits for their private purposes. Thomas M. Fattorusso, IRS criminal investigation's head agent in New York, commented on how Michel's fraudulent actions had shattered investors' dreams, referring to his actions as a greed that couldn't be justified.
Michel was apprehended in New York on January 4, 2023, on the grounds of being involved in the scam. The DOJ revealed on January 5 that Michel confessed to the NFT community via a social media conversation of conducting the "rug pull," stating that they hadn't planned, but the community became overly hostile. Michel faces a potential maximum imprisonment term of five years upon his sentencing, and he has agreed to pay a sum of $1.4 million as restitution.
Once having 6,797 NFTs produced on the Ethereum blockchain, the Mutant Ape Planet series —which has since been taken down from the NFT platform OpenSea— had over 320 Ether (ETH) in sales volume in February 2022. This volume dramatically decreased two months later, by April 2022. By January 2023, coinciding with Michel's arrest, both the average price and total sales volume of the collection had plunged to almost nothing.
Published At
11/15/2023 1:12:18 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.