Mutant Ape NFT Creator Pleads Guilty to $3 Million Fraud Scheme, Faces Possible Prison Sentence
Aurelien Michel, the mastermind behind the Mutant Ape Planet NFT collection, has admitted to wire fraud in a New York federal court. Michel confessed to defrauding investors of $3 million in a deceitful scheme reminiscent of the popular Mutant Ape Yacht Club (MAYC) collection by Yuga Labs. The Mutant Ape Planet team falsely pledged rewards and benefits to their investors but diverted the funds for personal gain, leaving their promises unfulfilled. Michel’s admission on social media has placed him at risk of a maximum prison sentence of five years.
In a concerning development, users of the NFT marketplace OpenSea have fallen victim to phishing attempts, receiving misleading emails containing malicious links. These attackers, pretending to be OpenSea, aim to deceive unsuspecting victims. Although OpenSea issued a statement on X (formerly Twitter), reassuring its users that no hack had occurred, a developer indicated that phishing emails had been received, hinting at a potential breach of dev contacts from OpenSea.
Meanwhile, Bitcoin has regained popularity and overtaken Ethereum in terms of average daily transaction fees. This renewed interest in Bitcoin is due to the emergence of Bitcoin Ordinals, a tool used to create NFT-like assets and BRC-20 tokens. On November 20, Bitcoin’s average daily transaction fee reached $10.34, surpassing Ethereum’s $8.43. The creation of over six million Bitcoin Ordinals assets has contributed to approximately $30 million in BTC fees being redistributed back into the network.
This guilty plea highlights the severity of the fraudulent activities perpetuated by creators like Aurelien Michel. It is a reminder to investors to remain vigilant and do thorough research before engaging with any NFT project, cautioned an industry expert.
As more individuals embrace the world of NFTs, it becomes crucial to prioritize cybersecurity and remain cautious of potential phishing attempts. Users are advised to exercise skepticism and verify the authenticity of any communication received.
The rise in Bitcoin’s transaction fees underscores the growing demand for Bitcoin Ordinals, which offer an alternative to traditional NFTs. This innovation has introduced a new narrative within the cryptocurrency space, attracting enthusiasts eager to explore the possibilities beyond Ethereum.
It is important for investors and participants in the digital asset market to remain informed and exercise due diligence. By staying vigilant and taking precautions against deceptive practices, users can navigate this evolving landscape with confidence.
