Mutant Ape Planet Developer Ordered to Forfeit $1.4 Million and Pay $15,000 Fine
In a recent court ruling, the developer of Mutant Ape Planet, a non-fungible token (NFT) collection that was accused of being a ripoff of the popular Mutant Ape Yacht Club (MAYC), has been ordered to forfeit $1.4 million and pay a $15,000 fine.
Background on the Case
On January 6, 2023, French national Aurelien Michel was arrested in New York for allegedly perpetrating a rug pull scheme that defrauded investors of almost $2.9 million. The Mutant Ape Planet collection consisted of 6,797 NFTs on the Ethereum blockchain, with sales totaling 567 Ether (ETH) at its peak. However, the average price plummeted after its launch in January 2022.
Michel’s Admission and Plea
In a Department of Justice press release, Homeland Security agent Ivan Arvelo stated that Michel perpetrated a rug pull scheme by admitting via social media chat that he had conducted a rug pull, saying, "We never intended to rug but the community went way too toxic." On November 15, 2023, Michel pleaded guilty to executing a rug pull and admitting to defrauding investors.
Prosecutors’ Statement
The prosecutors stated that Michel and his associates intentionally failed to deliver their promises to the NFT collection’s community members. They alleged that while Michel purported to sell NFTs backed with rewards and benefits, he turned the dream into a "nightmare of deception and losses."
Court Ruling
United States District Judge Margo Brodie reportedly sentenced Michel to a one-month lockup that he had already served in a facility in New York. The judge also imposed a $15,000 fine on Michel and ordered him to forfeit $1.4 million.
Defense Arguments
Michel’s lawyers, Ira Sorkin and Adam Brody, argued that the losses connected to the fraud were overstated. They claimed that purchasers of the NFT received "digital artwork" and therefore should not be considered victims of a traditional scam. The defense argued that Michel should be spared from prison.
Judge’s Ruling
However, Judge Brodie concluded that the loss amount is unclear. She stated that while the developer and his co-conspirators received $2.9 million from the project, everyone who purchased an NFT received something of value. "What that value is, is unclear," Brodie added.
Comparison to Mayc
It’s worth noting that Mutant Ape Planet was accused of being a ripoff of MAYC, which has been a successful and popular NFT collection in the past. The comparison between the two collections highlights the importance of transparency and authenticity in the NFT market.
Related Articles
- Lazarus Group Exploited Chrome Vulnerability with Fake NFT Game: In another incident, the Lazarus Group was accused of exploiting a Chrome vulnerability to promote a fake NFT game.
- Magazine: gmoney’s Anguish over ‘Buying the Top’ of CryptoPunks: NFT Collector : This article explores the experiences of an NFT collector who purchased CryptoPunks at its peak price.
Conclusion
The case of Mutant Ape Planet developer Aurelien Michel serves as a cautionary tale for NFT creators and investors. It highlights the importance of transparency, authenticity, and responsible marketing practices in the NFT market.
Recommendations for NFT Investors
When investing in NFTs, it’s essential to:
- Research the project thoroughly
- Verify the authenticity of the creator and their intentions
- Be aware of potential risks and red flags
- Diversify your portfolio to minimize losses
By following these recommendations, investors can make informed decisions and avoid falling victim to scams like Mutant Ape Planet.
Subscribe to Nifty Newsletter
Stay up-to-date with market trends, emerging artists, and opportunities in the NFT landscape by subscribing to our newsletter. Delivered every Wednesday, our newsletter provides you with essential insights to navigate the ever-changing world of NFTs.
About Us
Nifty is your go-to source for staying on top of market trends and unlocking opportunities in the NFT landscape. Our team of experts is dedicated to providing you with the latest news, analysis, and insights to help you make informed decisions about your NFT investments.
Subscribe Now
By subscribing to our newsletter, you agree to our Terms of Service and Privacy Policy. Join our community today and stay ahead of the curve in the world of NFTs.
