Mutant Ape Planet Creator Escapes Prison, Ordered to Forfeit $1M in NFT Fraud Case
In a recent court decision, Aurelien Michel, creator of the “Mutant Ape Planet” NFT collection accused of defrauding investors, has avoided prison but will forfeit over $1 million as part of his sentence.
Michel was charged in early 2023 with orchestrating a $2.9 million “rug pull” involving his NFT project, which was modeled after the popular “Mutant Ape Yacht Club” collection. He allegedly promoted the digital assets by promising buyers rewards like exclusive merchandise and virtual land, only to backtrack and divert investor funds for personal use.
In November 2023, Michel admitted to wire fraud, facing a potential five-year sentence. However, Judge Margo Brodie ruled that his one-month time served was sufficient, alongside a $15,000 fine and the forfeiture of $1.4 million.
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The decision contrasted with prosecutors’ initial request for a 37-month prison term. Michel’s defense argued that all buyers received a “digital artwork,” an asset fulfilling the NFT’s purpose as proof of unique ownership, though the project’s value remains disputed. Judge Brodie acknowledged this by noting that while Michel and his partners gained from the project, all investors technically received something of value, albeit of uncertain worth.
Michel’s case marks the first court ruling in the U.S. for an NFT-related fraud indictment, out of three similar cases. Meanwhile, recent data from CryptoSlam shows NFT sales reached $356 million in October, a 17% increase from the previous month.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
