Aurelien Michel Fined Over NFT Fraud Scheme

Aurelien Michel, the creator of the fraudulent 'Mutant Ape Planet' NFT collection, has avoided a prison sentence despite defrauding investors of $2.9 million through a rug pull scheme. U.S. District Judge Margo Brodie sentenced him to one month in jail, which he had already served, and imposed a $15,000 fine alongside a forfeiture of $1.4 million. While federal prosecutors sought a 37-month prison term, the judge acknowledged that the loss amount was unclear, noting that buyers received some form of digital artwork. Michel pleaded guilty to wire fraud conspiracy, admitting he failed to deliver the promised perks to NFT buyers. This case highlights the complexities of valuing digital assets in fraud cases amid a rise in NFT-related scams, with crypto fraud reaching $5.6 billion in 2023. Michel had previously marketed his NFTs, which were modeled after high-profile collections, promising exclusive rewards that never materialized.