In a recent legal development, a Parisian developer has admitted to wire fraud in connection with a counterfeit NFT project titled Mutant Ape Planet. This project, which mimicked the popular Mutant Ape Yacht Club series, has placed its originator at risk of a substantial prison sentence, as confirmed during court proceedings in New York.
Authorities from the U.S. Attorney’s Office in New York have shed light on the case, revealing that the individual, named Aurelien Michel, was involved in a deceptive practice known as a “rug pull,” a scam notorious in the crypto realm for project abandonment and misappropriation of investor funds. Michel has been found guilty of luring investors to part with $3 million through the sale of these NFTs under the guise of exclusive perks that were never delivered.
Special Agent Thomas M. Fattorusso from New York’s IRS criminal investigation division has condemned the actions, citing that Michel’s promise of dream-like NFTs with additional benefits resulted in a nightmare scenario for investors, who were left with nothing but false promises and financial losses.
Following his January arrest, Michel has agreed to return $1.4 million to those deceived. The collection in question, once available on the OpenSea marketplace, initially saw a surge in sales but experienced a sharp decline in value, leading up to Michel’s capture.
As the legal process moves forward, with a sentence yet to be determined, the incident serves as a cautionary tale for those navigating the volatile NFT markets, highlighting the critical need for thorough research and due diligence by potential investors.
