An American court has sentenced Aurelien Michel, the developer behind Mutant Ape Planet, a copycat project of the famous Mutant Ape Yacht Club collection. The court ordered Michel to forfeit $1.4 million and pay a $15,000 fine, but the actual punishment was minimal, as he had already served one month in a New York jail.
In January 2023, Michel was arrested for alleged fraud amounting to $2.9 million. Prosecutors claim he executed a so-called "rug pull," deceiving investors by promising to deliver value for the purchased NFTs. However, Michel's defense argued that the losses for investors were exaggerated, and buyers received "digital artwork."
Judge Margo Brodie noted that although Michel and his associates received $2.9 million, "everyone who purchased NFTs received something valuable." Nonetheless, the actual worth of these assets remained unclear.
In his statement, the collection creator admitted to conducting the scheme, claiming he "never intended to deceive anyone," but the situation spiraled out of control as "the community became too toxic." Prosecutors, on the other hand, argue that he deceived investors who hoped for profit, turning their dreams into a "nightmare of deception and losses."
At its peak popularity, total sales of the collection reached 567 ETH (approximately $1.39 million). However, since its launch in January 2022, the average price of the tokens has significantly dropped, leaving investors with substantial losses.
