The fraudster behind the Mutant Ape Planet NFT collection was ordered to forfeit $1.4 million from his scam but evaded jail time.
A French national, Aurelien Michel, who created the Mutant Ape Planet NFT collection—an obvious Mutant Ape Yacht Club (MAYC) ripoff—was ordered to pay $1.4 million as forfeiture. US District Court Judge Margo Brodie also imposed a $15,000 fine on Michel on November 1.
The fraudster was sentenced to one month in prison but has already served the time awaiting the hearing in a New York prison. Federal prosecutors wanted Michel to serve a 37-month sentence behind bars, but his lawyers, Ira Sorkin and Adam Brody argued the digital nature of the artwork sold made it impossible to identify the exact losses investors faced. Thus, they requested the judge to spare him time in prison.
Investors collectively put about $2.9 million into the project. The judge agreed that the investors, despite Michel’s actions, received something of value. Nevertheless, Judge Brodie agreed, stating, “What that value is, is unclear.”
Michel was arrested on January 6, 2023, in New York for defrauding investors of millions. At the time, Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI), mentioned, “As alleged, Aurelien Michel perpetrated a ‘rug pull’ scheme – stealing nearly $3 million from investors for his own personal use.” The Special Agent added, “Purchasers of Mutant Ape Planet NFTs thought they were investing in a trendy new collectible, but they were deceived and received none of the promised benefits.”
Michel Executed a Rug Pull and Scammed Mutant Ape Planet Investors
That rug-pulling allegation was something Michel admitted to over an online chat, saying, “We never intended to rug but the community went way too toxic.” Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), Thomas Fattorusso, said, “Once the NFTs were sold-out, Michel allegedly ceased communications and withdrew purchasers’ funds from the company’s cryptocurrency wallets, lining his pockets with nearly $3 Million of investors’ money.” He also mentioned that Michel could no longer blame investors for his criminal behavior.
The Mutant Ape Planet collection comprised 6,797 NFTs based on the Ethereum blockchain. It raised 567 Ether by selling the artwork to buyers. Not very long after, the prices of each NFT plummeted. It is also evident that Michel never delivered any of the rewards or benefits he promised at the time of the sales. He pleaded guilty to conducting the rug pull in November 2023.
