Mutant Ape Planet NFT Creator Ordered to Forfeit $1.4 Million
- Michel sentenced for defrauding investors through Mutant Ape Planet NFTs.
- Court ordered $1.4 million forfeiture and a $15,000 fine.
Aurelien Michel, the developer behind the controversial Mutant Ape Planet NFT collection, has been sentenced to a month of incarceration and ordered to forfeit $1.4 million in fraud-related penalties. The decision, handed down by U.S. District Judge Margo Brodie, comes as part of a case involving Michels alleged scheme that defrauded investors of nearly $3 million.
Michel had already served the month-long lockup before sentencing, which took place on November 1. Alongside the forfeiture, he was fined an additional $15,000. While federal prosecutors sought a more severe 37-month prison term, Michels defense argued that the purported losses from the scheme were exaggerated. His attorneys contended that NFT purchasers received digital artwork, suggesting that the true extent of financial damage remained ambiguous.
Judge Brodie acknowledged the complexities surrounding the case. He remarked that while Michel and his co-conspirators garnered $2.9 million from the project, the value received by NFT buyers was unclear. What that value is, is unclear, Brodie stated. He reflected on the judges difficulty in determining the precise losses experienced by investors.
Michels Long Legal Story
Michels legal troubles began in January 2023 when he was arrested in New York, following an investigation by Homeland Security. The Department of Justice revealed that Michel had confessed via social media to executing a rug pull, claiming, We never intended to rug but the community went way too toxic. This statement highlighted the fraught relationship between the NFT developer and the investor community.
Moreover, the Mutant Ape Planet collection, which consists of 6,797 NFTs on the Ethereum blockchain. It has seen its market performance falter dramatically since its launch in January 2022. With total sales amounting to 567 Ether, the average price of the NFTs has significantly declined. It further complicates the narrative of value for those who invested in the collection.
As the case unfolds, it raises broader questions about accountability and the risks associated with the rapidly evolving world of NFTs and digital assets.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
