US Arrests ‘Mutant Ape Planet’ NFT Creator in $3M ‘Rug Pull’ Scheme to Defraud Crypto Investors

US Arrests "Mutant Ape Planet" NFT Creator in $3M "Rug Pull" Scheme to Defraud Crypto Investors

The U.S. government has arrested and charged the creator of “Mutant Ape Planet” non-fungible tokens (NFTs) for allegedly defrauding crypto investors. “The purchasers were ‘rug pulled,"” the Department of Justice (DOJ) described, adding that millions of dollars in cryptocurrency were diverted for the NFT creator’s personal benefits. DOJ Takes Action Against NFT Rug Pull Scheme

The U.S. Department of Justice (DOJ) announced Thursday that Aurelien Michel has been charged with “defrauding purchasers of ‘Mutant Ape Planet’ NFTs, a type of digital asset, of more than $2.9 million in cryptocurrency.”

The defendant is a French national residing in the United Arab Emirates (UAE). He was arrested Wednesday at John F. Kennedy International Airport.

The Mutant Ape Planet (MAP) NFTs were marketed and sold with false promises of numerous rewards and benefits, including exclusive opportunities for additional investments, giveaways, merchandise, and other rewards, the DOJ detailed, elaborating: After selling out of the NFTs, the purchasers were ‘rug pulled’ … Millions worth of the NFT purchasers’ cryptocurrency was diverted for Michel’s personal benefit.

Mutant Ape Planet is a collection of 6,799 unique mutant apes that has no relationship with the popular Bored Ape Yacht Club, a different set of monkey-themed NFTs.

Ivan J. Arvelo, special agent in charge of Homeland Security Investigations (HSI) in New York, described: “Aurelien Michel perpetrated a ‘rug pull’ scheme – stealing nearly $3 million from investors for his own personal use.”

The DOJ noted that “in a social media chat with current and prospective purchasers, Michel admitted to the fraudulent ‘rug pull,’ but blamed the community of NFT purchasers for his actions, stating, ‘We never intended to rug but the community went way too toxic."”

While the Mutant Ape Planet NFT developers “promised to fund a community wallet for marketing, and would offer purchasers raffles, giveaways, airdrops, and tokens with staking features,” the DOJ said: The purchasers of the Mutant Ape Planet NFTs did not receive any of the promised benefits set out above. Tags in this story Bored Ape, DOJ NFT rug pull, Mutant Ape Planet, Mutant Ape Planet NFTs, NFT rug pull, NFT scam, NFTs

What do you think about this case? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Hong Kong Reaffirms Commitment to Become Regional Crypto Hub REGULATION | 1 day ago Binance Joins Association of Certified Sanctions Specialists REGULATION | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleTron’s USDD Stablecoin Experiences Fluctuations Again, Drops Below $1 Parity in Early 2023 Next articleWorld Bank Report Forecasts Bleak Global Economic Outlook, Citing ‘Adverse Developments’ and ‘Long-Lasting Slowdown’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method