The creator of the fraudulent NFT collection “Mutant Ape Planet” is off the hook for a prison sentence, but he’s not walking away scot-free. Aurelien Michel will have to pay over $1 million as punishment for pulling a rug on investors.
The Rug Pull
In early 2023, Michel was accused of scamming investors out of $2.9 million by selling “Mutant Ape Planet” NFTs. He promised buyers rewards like merchandise and metaverse land, claiming it would boost the value of their NFTs. But he never delivered on those promises, pocketing the money instead.
Guilty Plea and Light Sentence
Michel pleaded guilty to wire fraud charges last November, facing a potential five-year prison sentence. However, the judge handed down a much lighter sentence: one month in jail (which he had already served) and a $15,000 fine. He also has to forfeit $1.4 million of his wealth.
The judge’s reasoning? While the investors lost money, they did receive something of value: the NFTs themselves.
A Trend of NFT Fraud?
Michel’s case is one of the first NFT fraud cases to go to court in the US. It’s a reminder that the NFT space is still relatively unregulated and can be ripe for scams.
NFT Sales Continue to Rise
Despite the fraud cases, NFT sales continue to grow. In October, total sales reached $356.62 million, a 17.47% increase from the previous month.
