Mutant Ape NFT ripoff creator to forfeit $1.4M, avoids prison
The developer of the Mutant Ape Planet, a ripoff of the popular Mutant Ape Yacht Club (MAYC) non-fungible token (NFT) collection, was ordered by a court to forfeit $1.4 million and pay a $15,000 fine.
On Nov. 1, United States District Judge Margo Brodie reportedly sentenced French national Aurelien Michel to a one-month lockup that he had already served in a facility in New York. The judge also imposed a $15,000 fine on Michel and ordered the NFT developer to forfeit $1.4 million.
While federal prosecutors wanted a 37-month prison term for Michel, the defense argued that losses connected to the fraud were overstated. Michel’s lawyers, Ira Sorkin and Adam Brody argued that the Mutant Ape Planet developer should be spared from prison as purchasers of the NFT received “digital artwork.”
Because of this, Brodie concluded that the loss amount is unclear. The judge said that while the developer and his co-conspirators received $2.9 million from the project, everyone who purchased an NFT received something of value. “What that value is, is unclear,” Brodie added.
Related: Lazarus Group exploited Chrome vulnerability with fake NFT game
Michel admitted to performing a “rug pull” on social media
On Jan. 6, 2023, Michel was arrested in New York for the alleged $2.9 million fraud. In a Department of Justice press release, Homeland Security agent Ivan Arvelosaid said that Michel perpetrated a rug pull scheme and stole almost $3 million from investors.
The release also said in January that Michel admitted via social media chat that he had conducted a rug pull by saying, “We never intended to rug but the community went way too toxic.”
Sales of the Mutant Ape Planet NFT collection. Source: OpenSea
The collection consisted of 6,797 NFTs on Ethereum. It had 567 Ether ( ETH ) in sales, but the average price plummeted since its launch in January 2022.
On Nov. 15, 2023, Michel pleaded guilty to executing a rug pull and admitting to defrauding investors. At the time, prosecutors said Michel and his associates intentionally failed to deliver their promises to the NFT collection’s community members.
The prosecutors said that while Michel purported to sell NFTs backed with rewards and benefits, he turned the dream into a “nightmare of deception and losses.”
Magazine: gmoney’s anguish over ‘buying the top’ of CryptoPunks: NFT Collector
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Rumble to spend up to $20M on Bitcoin in new treasury strategy
What it’s going to take to hit $100K
MicroStrategy announced that it purchased 55,500 bitcoin last week, but that didn’t quite push BTC over the 6-figure edge
Why analysts are upping price targets for MSTR and COIN
MSTR shares hovered around $402 at 2 pm ET Monday — down 4.7% on the day but up 70% from a month ago
FIFA Teams Up with Mythical Games to Launch Blockchain-Powered Mobile Soccer Game