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Aurelien Michel, who created a replica of the popular Mutant Ape Yacht Club (MAYC) NFT collection called Mutant Ape Planet, pleaded guilty to defrauding investors but avoided prison time. US District Court Judge Margo Brodie ordered Michel to return $1.4 million in funds and pay a fine of $15,000.
On November 1, Judge Brodie ruled that Michel, a French citizen, should not be sentenced to more time in prison, considering the time he spent in custody in New York for a month. Federal prosecutors had sought a 37-month prison sentence for Michel, but defense attorneys Ira Sorkin and Adam Brody argued that the losses incurred in the scam were exaggerated. The attorneys argued that Michel should be spared prison time because NFT buyers receive value as “digital works of art.” Judge Brodie said the amount of the loss was unclear, adding, “It is unclear what the value of that is.”
Mutant Ape Hacker Michel Admits to Social Media “Rug Pull”
Michel was arrested in New York in January 2023 for allegedly scamming investors out of $2.9 million. According to the Department of Justice, Michel admitted to committing a “rug pull” (defrauding investors to withdraw from the project) via social media. Michel confirmed the fraud by saying, “We did not intend to rug pull, but the community became too toxic.”
The collection of 6,797 NFTs was released on the Ethereum network in January 2022 and sold for 567 Ethereum, but the average selling price has dropped significantly since its launch.
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On November 15, 2023, Michel pleaded guilty to defrauding investors. Prosecutors said Michel and his associates intentionally failed to deliver on the rewards and benefits they promised to members of the NFT collection community. It was stated that Michel left investors with “disappointment and losses.”
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