• The U.S. government has arrested and charged the creator of “Mutant Ape Planet” non-fungible tokens (NFTs) for allegedly defrauding crypto investors.
• The defendant is a French national residing in the United Arab Emirates (UAE). He was arrested Wednesday at John F. Kennedy International Airport.
• Millions of dollars in cryptocurrency were diverted for the NFT creator’s personal benefit.
The United States Department of Justice (DOJ) recently made an announcement that Aurelien Michel, the creator of “Mutant Ape Planet” non-fungible tokens (NFTs), has been arrested and charged with defrauding crypto investors of more than $2.9 million in cryptocurrency. The defendant is a French national living in the United Arab Emirates (UAE). He was arrested Wednesday at John F. Kennedy International Airport.
The DOJ detailed that 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. After selling out of the NFTs, the purchasers were “rug pulled”, thus millions worth of the NFT purchasers’ cryptocurrency was diverted for Michel’s personal benefit.
Ivan J. Arvelo, special agent in charge of Homeland Security Investigations (HSI) in New York, stated: “Aurelien Michel perpetrated a ‘rug pull’ scheme – stealing nearly $3 million from investors for his own personal use.” The DOJ also noted that “in a social media chat with current and prospective purchasers, Michel admitted to the fraudulent ‘rug pull,’ but blamed the community of purchasers for not being patient enough.”
This case is being handled by the U.S. Attorney’s Office for the Eastern District of New York and the DOJ’s Criminal Division’s Computer Crime and Intellectual Property Section. If convicted, Michel may face up to 20 years in prison.
The U.S. government has sent a strong message to those who engage in fraudulent activities involving digital assets. The DOJ’s Cyber-Digital Task Force and the U.S. Attorney’s Office for the Eastern District of New York is determined to protect investors and bring those who commit fraud to justice.