Key Takeaways
- Court documents revealed that Michel and his team had raised around $2.9 million from the project
- The court sentenced Michel to a one-month lockup that he had already served in a facility in New York.
Aurelien Michel, the French developer behind the Mutant Ape Planet NFT project, was recently ordered by a U.S. court to forfeit $1.4 million and pay a $15,000 fine after pleading guilty to defrauding investors.
His project, which aimed to copy the popular Mutant Ape Yacht Club (MAYC), failed to meet the promises made to buyers, leading to financial losses and immense dissatisfaction in the NFT community. As per reports, the US District Judge Margo Brodie sentenced Michel to a one-month lockup that he had already served in a facility in New York.
Last year, in November, Michel admitted to charges of fraud linked to the project, which launched with over 6,700 NFTs on the Ethereum blockchain. Though prosecutors initially sought a 37-month prison sentence, Michel’s legal team argued that buyers still received digital artwork, even if the NFTs fell short of the anticipated value.
Judge Margo Brodie acknowledged that the NFTs retained some value but called it “unclear,” given that the project didn’t deliver on its expected rewards. Michel avoided additional prison time, having already served a month.
The Mutant Ape Planet project initially attracted attention for its resemblance to the popular MAYC collection, with NFTs quickly selling out. However, the project soon faced scrutiny as promised benefits and rewards went undelivered. The NFT values subsequently plummeted, leaving many buyers holding assets that had drastically depreciated.
Court documents revealed that Michel and his team had raised approximately $2.9 million from the project, yet failed to provide promised perks, leading to allegations of a “rug pull”—a type of scam in which developers abandon a project after raising assets and enough, leaving participants with worthless NFTS/digital assets. Michel admitted on social media to intentionally ending the project, blaming the “toxic” community for his decision.
Michel’s arrest in January 2023, followed by the court case, ignited debates and discussions over accountability in the NFT market space. Homeland Security agent Ivan Arvelo, involved in the investigation, called Michel’s actions a clear case of investor fraud.
