NFT Mutant Ape Planet Owner Pleads Guilty in $3 Million Scam
French programmer Aurelien Michel has pleaded guilty in a U.S. federal court and agreed to pay a $1.4 million fine.
The mastermind behind Mutant Ape Planet, a knockoff of the Mutant Ape Yacht Club NFT collection, has officially pleaded guilty in relation to a $3 million rug pull scam, according to information from the U.S. Department of Justice (DOJ) posted on November 14.
Nonfungible Token (NFT) Developer Pleads Guilty to an International Scheme to Defraud NFT Purchasers
— US Attorney EDNY (@EDNYnews) November 14, 2023
Aurelien Michel Conspired to Steal From Purchasers of “Mutant Ape Planet” NFTs Through False Promises and Misrepresentations@HSINewYork @IRSCI_NY https://t.co/K3CzIb8dQD
Aurelien Michel, a French citizen residing in the United Arab Emirates (UAE), was arrested earlier this year in New York and is facing up to 5 years in prison. The Eastern District of New York’s attorney stated that Michel has agreed to pay a $1.4 million fine.
Attorney Breon Peace commented:
“We are keenly aware that criminal actors are exploiting the rapid pace of innovation in the digital asset space and the public’s investment enthusiasm to carry out large-scale frauds.”
According to the charges, Aurelien Michel orchestrated a rug pull scheme, stealing nearly $3 million from investors. Buyers of the Mutant Ape Planet NFTs believed they were investing in a trendy collection, but in reality, they received no benefits whatsoever.
It wasn't until Michel admitted in the Discord channel that he had absconded with the hard-earned money of many people, leaving the naive investors to realize they had been duped.
“I never intended to rug pull, but the community became too toxic,” Michel reportedly said, as per the DOJ.
There are numerous sophisticated scams targeting crypto users, particularly those involved with NFTs. A new scam method called "sleepdrop" has also caused over $11.5 million in damage since it was first detected in December 2022.
This scam involves sending seemingly reputable ERC-1155 tokens (often NFTs) to users randomly. The strategy lures victims into clicking on fraudulent websites, thereby authorizing transactions that allow scammers to steal their assets. The perpetrators of this scam method remain unidentified, and users need to be highly cautious and vigilant.
