The developer of the Mutant Ape Planet NFT collection — a counterfeit of Mutant Ape Yacht Club — pleaded guilty to defrauding buyers through the implementation of a rug pull scheme, which netted $3 million.
Nonfungible Token (NFT) Developer Pleads Guilty to an International Scheme to Defraud NFT Purchasers
Aurelien Michel Conspired to Steal From Purchasers of “Mutant Ape Planet” NFTs Through False Promises and Misrepresentations@HSINewYork @IRSCI_NY https://t.co/K3CzIb8dQD
— US Attorney EDNY (@EDNYnews) November 14, 2023
In January, U.S. authorities charged 24-year-old French citizen Aurélien Michel with fraud. According to the U.S. Attorney for the Eastern District of New York, he faces up to five years’ imprisonment, and he agreed to pay $1.4 million in restitution.
“Aurélien Michel lured investors with promises of profiting from the NFT fad but abandoned the project after amassing nearly $3 million in the so-called rug pull. The defendant in defrauding the mutant monkey NFT community stated he was innocent and even called the victims “too toxic”, said Special Agent HSI Ivan Arvelo.
According to court filings, Michel and his co-conspirators sold collectible tokens to buyers, falsely promising numerous rewards and perks that would boost the assets’ value. But the defendant deliberately failed to fulfil the promises, diverting millions of dollars for personal use.
According to OpenSea data, 7,880 tokens of the collection continue to trade. However, the average price of Mutant Ape Planet has plummeted from a peak of 3.25 ETH in January to 0.06 ETH as of November 13.
In the third quarter, the crypto industry lost about $889.3 million due to hacks, frauds and rug pulls.