Fraudulent NFT Collection Creator of Mutant Ape Yacht Club Pleads Guilty

The US Department of Justice revealed that Aurelien Michel, a French citizen residing in the United Arab Emirates, has confessed to electronic fraud and misleading purchasers regarding the counterfeit Mutant Ape Planet non-fungible token (NFT) collection. Michel, associated with a fake version of the Mutant Ape Yacht Club, admitted to deceiving buyers in federal court documents filed in Brooklyn, New York.

Investigative materials presented during legal proceedings revealed that Michel and his associates engaged in selling fake NFTs, falsely promising substantial rewards and benefits to buyers, with the purported aim of increasing the tokens' future value.

Having amassed around $3 million, Michel attempted to abscond with the embezzled funds but was apprehended. The Eastern District of New York prosecutor stated that he faces up to five years of imprisonment and a $1.4 million fine.

A year prior, Yuga Labs filed a lawsuit against artist Rider Ripps and partners for copyright infringement on the Bored Ape non-fungible token series, impacting the developer's economic activities.