The architect of the Mutant Ape Planet NFT series has found himself in legal trouble, being arrested under claims of fraudulent behavior.
In Brief
Aurelien Michel, creator of the Mutant Ape Planet NFTs, is facing serious allegations involving a fraudulent scheme that amounted to $2.9 million.
Michel decided to distance himself from the project, citing the community's behavior as 'toxic.'
Based in New York, the creator of the Mutant Ape Planet NFT series was arrested due to allegations of fraud and engaging in a 'rug pull.'
Aurelien Michel, a 24-year-old French national living in the UAE, launched the NFT collection called 'Mutant Ape Planet' in January 2022. This collection bears a resemblance to the established Mutant Ape Yacht Club series created by Yuga Labs.
The description of Mutant Ape Planet on OpenSea explicitly states, 'We are not in any way affiliated with the projects that inspire us.'
Michel's collection consists of 6,700 NFTs minted on the Ethereum blockchain. Over the span of a year, Mutant Ape Planet amassed a trading volume of 567 ETH, equating to roughly $704,781 at the time of writing, with more than 3,700 buyers acquiring these tokens.
The accused promoter lured potential NFT holders with promises of exclusive benefits and experiences, such as special merchandise, giveaways, and investment opportunities. Unfortunately, those who invested never received what was promised. After collectors purchased the NFTs, Aurelien Michel allegedly diverted funds from the project's wallet to his personal account. According to officials from the U.S. Department of Justice, he is said to have pilfered more than $2.9 million in cryptocurrency. press release In the aftermath, Michel stepped away from the project, labeling the community as 'toxic.'
The absence of any activity or clear demonstration of the promised value led many community members to doubt the project's integrity, resulting in a surge of negativity in discussions and an environment deemed increasingly toxic. Despite this, the founder expressed that the community was not viable.
A 'rug pull' refers to a deceptive exit strategy often employed by NFT creators. Reports indicate that in 2022, rug pulls became the most common form of attack within the crypto ecosystem.
Recent arrests include two young individuals implicated in a $1.1 million scam involving the 'Frosties' NFT rug pull.
The creators behind CryptoPhunk and Azuki have faced scrutiny for potential rug pulls. DappRadar A former executive from OpenSea has been charged with insider trading and money laundering.
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Disclaimer
In line with the Trust Project guidelines Currently based in northern Italy, Valeria often works remotely while exploring various cities across Europe.
