ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Mutant Ape Planet NFT Collection Developer Pulled off a $3 Million Fraud; Here are the Details

The admission, made in a U.S. federal court, has led to legal consequences, including potential prison time and a $1.4 million forfeiture.
PUBLISHED NOV 18, 2023
People wait in line at the grand opening of the Bored & Hungry pop-up burger restaurant, which uses NFT art for its branding/  Getty Images | Photo by Mario Tama
People wait in line at the grand opening of the Bored & Hungry pop-up burger restaurant, which uses NFT art for its branding/ Getty Images | Photo by Mario Tama
People take photos by a Bored Ape Yacht Club NFT billboard in Times Square during the 4th annual NFT.NYC conference | Getty Images | Photo by Noam Galai
People take photos by a Bored Ape Yacht Club NFT billboard | Getty Images | Photo by Noam Galai

As art becomes digital, more sophisticated methods to fake it are also emerging. French developer, Aurelien Michel confessed to defrauding buyers in connection to the Mutant Ape Planet NFT collection, a knockoff of the popular Mutant Ape Yacht Club NFTs, per DOJ. The rug pulling scam netted nearly $3 million, resulting in legal action and potential prison time for Michel.

The 24-year-old French citizen residing in the United Arab Emirates was taken into custody after landing at John F. Kennedy Airport in New York. The arrest was followed by Michel's admission of guilt in a U.S. federal court where he pleaded guilty to charges related to the fraudulent scheme.

Billboards display Bored Ape Yacht Club NFT art in Times Square | Getty Images | Photo by Noam Galai
Billboards display Bored Ape Yacht Club NFT art in Times Square | Getty Images | Photo by Noam Galai

Michel, along with unnamed accomplices, marketed the Mutant Ape Planet NFTs by enticing buyers with promises of rewards, raffles, exclusive access to other cryptocurrency assets, and support from a community wallet earmarked for NFT marketing. The defendants also made vague commitments about acquiring "metaverse land" for the NFT project. However, these promises proved to be deceptive. After selling all the NFTs, Michel and his associates allegedly transferred nearly $3 million in earnings to various wallets, including those under Michel's control.

Michel faces a potential prison sentence of up to five years and has agreed to pay $1.4 million in forfeiture. The legal action against him signals a crackdown on fraudulent activities within the rapidly evolving digital asset space.

U.S. Attorney Breon Peace emphasized the authorities' awareness of criminal actors exploiting the fast pace of innovation in the digital asset sector and investors' eagerness to participate in cryptocurrency. Action in the case reflects the commitment to curbing large-scale fraud and ensuring accountability.

A person walks by Bored Ape Yacht Club NFT characters inside Radio City Music Hall | Getty Images | Photo by Noam Galai
A person walks by Bored Ape Yacht Club NFT characters inside Radio City Music Hall | Getty Images | Photo by Noam Galai

When Mutant Ape Planet buyers became suspicious regarding these transfers, Michel, posing as "James" in the community's Discord channel, admitted to the rug pull.“We never intended to rug but the community went way too toxic,” Michel stated. He took full responsibility of the fiasco that was caused by their actions.

Thomas Fattorusso, Acting Special Agent-in-Charge with the Internal Revenue Service’s Criminal Investigation team, stated that Michel allegedly defrauded investors by making false representations, including giveaways, tokens with staking features, and merchandise collections. This case highlights the importance of regulatory vigilance in the crypto space and serves as a cautionary tale for investors navigating the NFT market. Michel's guilty plea underscores the consequences that individuals engaging in fraudulent activities may face contributing to the ongoing efforts to maintain integrity in the cryptocurrency ecosystem.

MORE ON MARKET REALIST
According to the expert, personal letters and a signature from Tolkien himself added to the value of the book.
7 hours ago
Chistina and Katie Currie won over $88,000 in cash and two exotic vacations with their stunning performance.
8 hours ago
After everyone backed out, the billionaire Shark stepped up to help the founder of Diaper Dust.
1 day ago
Sun kept repeating the incorrect phrase but couldn't identify the error in time.
1 day ago
After almost closing a deal with Mr Wonderful, the founder of 'Simply Good Jars' pivoted hard.
1 day ago
The host thought it was the "worst possible answer" to give even as the team felt it was good enough.
2 days ago
Adding to the controversy, the owner of Dr. Mudd's lapdesk asked Harrison for $100,000.
2 days ago
With just milliseconds to spare, Sarah LaPilusa pulled off an incredible Bonus Round win.
2 days ago
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 days ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
3 days ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
3 days ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
3 days ago
Jennings had a record-setting winning streak as a contestant before he became the host.
4 days ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
4 days ago
The former kids champion, Skyler Hornback knew what was coming.
4 days ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
5 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
5 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
5 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
6 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
6 days ago