As a seasoned analyst with over two decades of experience in both traditional finance and the burgeoning world of blockchain, I have witnessed numerous instances where the allure of quick profits leads individuals to engage in questionable practices. The case of Aurelien Michel, the developer of the Mutant Ape Planet NFT collection, is yet another stark reminder that the digital frontier, while offering unprecedented opportunities for creativity and wealth creation, also presents a fertile ground for fraudsters.
In a court ruling, the creator of the Mutant Ape Planet NFT collection, which is similar to the well-known Mutant Ape Yacht Club (MAYC) NFT collection, was mandated to surrender $1.4 million and pay a penalty of $15,000.
On November 1st, it appears that French national Aurelien Michel was given a one-month imprisonment sentence by United States District Judge Margo Brodie. This sentence was for time already served in a New York facility. Additionally, the judge imposed a fine of $15,000 on Michel and ordered him to forfeit $1.4 million. The individual in question is an NFT (Non-Fungible Token) developer.
In the case of Michel, federal prosecutors proposed a 37-month prison sentence. However, his lawyers, Ira Sorkin and Adam Brody, contended that the extent of the fraud had been exaggerated. They suggested that the Mutant Ape Planet developer should avoid imprisonment since the buyers of the NFT received “digital art” instead.
Due to this situation, Brodie determined that the total loss was not definite. The judge remarked that although the developer and his accomplices obtained $2.9 million from the project, everyone who bought an NFT received something of worth. Brodie further explained that “the actual value of this is uncertain.
Michel admitted to performing a “rug pull” on social media
On January 6, 2023, Michel was taken into custody in New York under accusations of orchestrating a fraud amounting to approximately $2.9 million. In a statement from the Department of Justice, Homeland Security agent Ivan Arvelo stated that Michel carried out a “rug pull” scam and pocketed nearly $3 million from investors.
According to the statement from January, Michel confessed through social media discussions that he was involved in a scam referred to as a “rug pull.” He stated, “Although we didn’t plan on it, the community became excessively hostile and toxic.
This assortment held 6,797 Non-Fungible Tokens (NFTs) based on Ethereum. It generated a total of 567 Ether (ETH) through sales, but the typical selling price has significantly dropped since its debut in January 2022.
On November 15, 2023, Michel admitted in court to orchestrating an NFT rug pull and deceiving investors. Initially, authorities claimed that Michel and his team deliberately reneged on their commitments to the NFT collection’s members.
Prosecutors stated that instead of delivering on his promise of NFTs with associated perks, Michel transformed what should have been a fulfilling experience into one filled with deceit and financial setbacks.
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2024-11-02 22:11