As a researcher who has followed the evolution of blockchain technology and cryptocurrencies for several years, I find myself both perplexed and intrigued by this latest development involving Aurelien Michel and the “Mutant Ape Planet” NFT collection. On one hand, it’s disheartening to see yet another instance of fraud within the rapidly growing world of digital assets. On the other, it’s fascinating to witness how the legal system is grappling with these novel issues, trying to find a balance between punishment and technological innovation.
In an intriguing turn of events, the mastermind behind the misleading NFT series “Mutant Ape Planet,” Aurelien Michel, will reportedly dodge a jail term due to a recent court decision. Instead, he has been mandated to relinquish more than $1 million as retribution for carrying out a “rug pull.
Mutant Ape Creator To Pay $15,000, Escapes Prison Sentence On Technicality
In January 2023, the US Attorney’s Office in the Eastern District of New York charged Michel with defrauding investors out of approximately $2.9 million by selling “Mutant Ape Planet” NFTs, which were similar to the well-known “Mutant Ape Yacht Club” collection. In simpler terms, they accused him of deceiving investors and taking their money through the sale of digital art pieces called NFTs, which resembled a popular series called “Mutant Ape Yacht Club.
In 2022, a person from France advertised these digital items (NFTs) to numerous people, assuring them various perks like merchandise and virtual real estate in the metaverse. These incentives were intended to increase the worth of the NFTs once purchased.
Michel failed to keep his word, instead orchestrating a scam known as a “rug pull” where the funds collected from investors were misused for personal expenses. In November 2023, this dishonest NFT creator admitted guilt in wire fraud charges brought forth by US prosecutors, potentially facing a five-year prison sentence.
On November 1, US Judge Margo Brodie sentenced Michel to one month in prison, which he has already served since his arrest in 2022. Additionally, the French national is anticipated to pay a $15,000 fine and forfeit approximately $1.4 million of his assets.
Judge Brodie’s sentence is considerably light in comparison to the prosecutors’ request for a 37-month prison sentence. In his defense, Michel’s lawyers had argued he be spared from a jail term as all investors did receive a “digital artwork” in line with the definition of an NFT that is designed to confirm unique ownership of various digital art forms.
The US Judge appeared to have aligned with the defending counsel as she said to Michel:
The exact value of what was received through the project is uncertain. However, it’s indisputable that you and your associates profited or received approximately $2.9 million from the project. Additionally, there’s no argument that every NFT buyer obtained or received something of worth. But, the specific nature of this value remains unclear.
Based on Bloomberg’s report, Michel’s case is among the three U.S. instances of NFT fraud being investigated, making it the initial one to secure a court verdict.
NFT Sales Reach $356 Million In October
Based on statistics from NFT data collector CryptoSlam, the total NFT sales in October soared to approximately $356.62 million, marking a 17.47% increase compared to September’s figures. This impressive sales volume was generated through 7,231,056 transactions, which involved 964,210 distinct sellers and 616,546 unique buyers.
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2024-11-03 20:11