In a surprising legal outcome, Aurelien Michel, the mind behind the fraudulent NFT collection “Mutant Ape Planet,” will not be serving prison time following a recent court decision. Instead, he faces a significant financial penalty, being ordered to relinquish over $1 million as retribution for orchestrating a rug pull.
Mutant Ape Planet Creator Penalized Financially, Escapes Lengthy Jail Sentence
In a notable case from January 2023, the US Attorney’s Office for the Eastern District of New York brought charges against Michel, accusing him of misleading investors and fraudulently acquiring $2.9 million through the sale of “Mutant Ape Planet” NFTs. These digital assets were inspired by the renowned “Mutant Ape Yacht Club” collection. Michel, a French national, had lured investors in 2022 with enticing promises of exclusive rewards, including merchandise and metaverse land, which were purported to enhance the value of the NFTs upon purchase.
However, Michel failed to deliver on these promises, executing a rug pull that redirected the investors’ funds to his personal accounts. In November 2023, he pleaded guilty to wire fraud charges, which could have resulted in a five-year prison term. Nonetheless, a Bloomberg report dated November 1 revealed that US Judge Margo Brodie sentenced Michel to one month, a term he had already served following his 2022 arrest. Additionally, Michel is required to pay a $15,000 fine and forfeit $1.4 million of his assets.
Judge Brodie’s ruling is notably lenient compared to the 37-month sentence prosecutors had sought. Michel’s defense argued against incarceration, claiming that investors received a form of “digital artwork” aligning with the NFT’s purpose, which is to authenticate unique ownership of digital art. Judge Brodie seemed to resonate with this viewpoint, stating:
The exact loss amount remains ambiguous. It is undeniable that you and your collaborators gained or received $2.9 million from the project. However, it is also undisputed that everyone who purchased an NFT obtained something of value, although the precise value is unclear.
Bloomberg reports that Michel’s case is among three US indictments related to NFT fraud, marking the first to achieve a court verdict.
October Sees a Surge in NFT Sales, Reaching $356 Million
According to CryptoSlam, a leading NFT data aggregator, NFT sales in October soared to $356.62 million. This figure represents a 17.47% increase compared to September’s numbers. The substantial sales volume of the previous month was generated from 7,231,056 transactions involving 964,210 unique sellers and 616,546 unique buyers.
These statistics underscore a growing interest and activity within the NFT market, highlighting a vibrant ecosystem that continues to evolve. The rise in sales reflects the dynamic nature of digital asset investment, indicating robust engagement from both sellers and buyers in the NFT space.
As the NFT market expands, it presents exciting opportunities and challenges, emphasizing the need for cautious investment and awareness of potential pitfalls such as fraudulent schemes. The case against Michel serves as a cautionary tale, reminding investors to conduct thorough research before engaging with digital assets.
