Allegations are that Michel stole over $3 million from investors in a rug pull scam.
This collection has 6,797 NFTs that have been uploaded to the Ethereum blockchain.
Mutant Ape Planet, the creator of a Mutant Ape Yacht Club rip-off line, has been detained in New York and accused of running a rug pull scam to swindle investors out of $2.9 million.
On January 4, a homeland security agent named Ivan J. Arvelo arrested a French citizen named Aurelien Michel at New York’s John F. Kennedy International Airport on allegations that Michel stole over $3 million from investors in a rug pull scam.
According to Thomas Fattorusso, an Internal Revenue Service agent, “Michel defrauded investors by making false representations of, amongst other things, giveaways, tokens with staking features, and merchandise collections,” as stated in a press release by the Department of Justice. According to the announcement, Michel took the money when the NFTs were sold.
Community Assumes Control
It is claimed in the statement that Michel acknowledged committing a rug pull. By claiming “we never intended to rug but the community went way too toxic” in a social media discussion.
Based on the successful Mutant Ape Yacht Club NFT collection. This one has 6,797 NFTs that have been uploaded to the Ethereum blockchain. Since its inception in January 2022. The collection’s average price and sales volume have plummeted, resulting in a total of 567 Ether in sales.
Those who own the collection have been speaking out on Twitter since James’ arrest, explaining how he tried to make it seem like the community’s growing skepticism was to blame for his departure. The community, led by an anonymous user who goes by the handle HTMadge, has now assumed control of the project and is working to revive it.