The US government has arrested and charged the creator of the “Mutant Ape Planet” non-fungible tokens (NFTs) for allegedly defrauding crypto investors.” Purchasers were “rag-pulled,” the Department of Justice (DOJ) explained, adding that millions of dollars in cryptocurrency were diverted for the NFT creators’ personal gain.”
DOJ Takes Action Against NFT Rug Pull Scheme
The U.S. Department of Justice (DOJ) announced Thursday that Aurelien Michel has been indicted for “defrauding purchasers of the ‘Mutant Ape Planet’ NFT, a type of digital asset, out of over $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.
Mutant Ape Planet (MAP) NFT was marketed and sold with false promises of numerous rewards and benefits, including exclusive opportunities for additional investment, giveaways, merchandise, and other rewards, the DOJ detailed.
After selling off the NFTs, purchasers were “rag-pulled”… . millions worth of cryptocurrency from NFT purchasers was diverted for Michelle’s personal gain.
Mutant Ape Planet, a collection of 6,799 unique mutant apes, has nothing to do with the popular Bored Ape Yacht Club, a different set of ape-themed NFTs.
Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI) in New York, explained that Aurelien Michel ran a “rug-pull” scheme in which she stole nearly $3 million from investors for her personal use.
The DOJ noted that “in social media chats with current and prospective buyers, Michel admitted to the fraudulent ‘rag pull’ but blamed the community of NFT buyers, saying, ‘We didn’t mean to rag, but the community became too toxic.'”
The developers of Mutant Ape Planet NFT “promised to fund a community wallet for marketing purposes and provide purchasers with tokens with raffle, giveaway, airdrop, and staking features,” the DOJ stated, which is true.
Purchasers of the Mutant Ape Planet NFT did not receive any of the above promised benefits.
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