The Evolved Apes Rug Pull
In 2021, the developer of the “Evolved Apes” NFT project disappeared with $2.9 million in funds. The project promised a fighting game but abandoned it and deleted its website.
Red Flags and Suspicions
Investors noticed warning signs before the scam, including unprofessional announcements and a lack of communication from the team.
Indictments and Charges
Three UK nationals have been indicted in New York for laundering the stolen funds. They face charges of wire fraud and money laundering, each carrying a potential 20-year prison sentence.
Law Enforcement’s Response
US Attorney Damian Williams emphasized that NFT scams will not be tolerated. FBI Assistant Director James Smith vowed to pursue those who defraud investors.
Decline of the NFT Market
Since the scam, the NFT market has declined significantly. Many collections have become worthless, and interest from investors has plummeted.
