NFT creator escapes lengthy jail time in $2.9M fraud case, forfeits $1.4M instead

Aurelien Michel, creator of the Mutant Ape Planet NFT collection, a knockoff of the well-known Mutant Ape Yacht Club (MAYC), has pleaded guilty to defrauding investors.

However, despite facing charges for what authorities called a “rug pull” scheme, Michel avoided a lengthy prison sentence.

Instead, he was ordered by U.S. District Judge Margo Brodie to forfeit $1.4 million and pay a $15,000 fine, while serving a month in detention, which he has already completed.

Michel’s case centres on claims that he and his associates promoted the Mutant Ape Planet NFTs with promises of exclusive benefits and rewards, only to fail to deliver on these promises. 

This “rug pull,” where investors were left empty-handed, has been valued at $2.9 million. 

However, the court acknowledged that NFT buyers did receive digital artwork, making it challenging to determine the exact loss amount.

The Department of Justice has cited Michel’s own admission on social media, where he confessed to defrauding investors, stating, “We never intended to rug but the community went way too toxic.”