Nfts
$3 Million Disappears in Carpet Pull
The United States has filed charges against three individuals linked to the 2021 Evolved Apes NFT scam. The NFT company, which initially promised a video game to its users, surprisingly disappeared from the internet following its collection campaign of funds.
The U.S. Department of Justice (DOJ) accused the defendants of misleading investors with false promises and stealing profits.
Three accused in connection with Evolved Apes NFT Rug Pull
The United States Attorney’s Office for the Southern District of New York has recently taken significant action. Office announcement charges against three individuals related to a non-fungible token (NFT) rug draw, Evolved Apes, from 2021.
The three individuals, Mohamed Rilaz Waleedh, Mohamed-Amin Atcha and Daood Hassan, face charges of money laundering and wire fraud. The DOJ’s lawsuit hinges on the Evolved Apes program launched in 2021, comprising a collection of 10,000 unique NFTs.
The project promised access to a future video game, attracting investors with potential utility and increasing NFT values. However, shortly after its launch, the project took a turn for the worse.
The pseudonymous developer, “Evil Ape,” disappeared less than a week after the initial offering. According to a sourcethe developer disappeared with 798 Ether worth almost $3 million at the time ($2.7 million based on current market rates).
Additionally, the main X of the project account And website has gone dark, leaving investors with worthless Ethereum-based NFTs and a feeling of betrayal.
U.S. Attorney Damian Williams addressed the case, stating, “The defendants are accused of manipulating the value of digital artwork through false promises regarding a video game. »
Attorney Williams also noted that the defendants allegedly took investors’ money but failed to grow the game. Instead, they pocketed the funds. Although NFTs remain a new technology, established laws still apply. The lawyer also noted that making false statements and promising to get money from investors is a crime.
Despite massive loss, apes evolved community is not ready to give up. Two community members, Mike Cryptobull and Josh CryptoBull, are leading the charge with a new project.
This potential new project, Fight Back Apes, will tie into the original Evolved Apes work. Those who held Evolved Apes NFTs will automatically qualify for Fight Back Apes tokens.
One of the key goals is to prevent the original developer from receiving royalties on future sales of Evolved Apes NFTs. Unlike Evolved Apes, where one person controls everything, Fight Back Apes will use a multi-signature wallet.
Rug Pulls: The Dark Side of the NFT World
Evolved Apes is just one example of other similar issues in the crypto space. According to DeFi Rekta database that tracks cryptocurrencies, rug pulls have defrauded investors out of more than $14.5 billion since 2011.
These sc@ms can in particular target various projects within the cryptocurrency space. However, due to the speculative nature of the market, NFTs have become a particularly attractive target.
Largest rug draw ever recorded implied Africrypt, a South African digital asset investment platform. In 2021, Africrypt’s founders reportedly made off with a staggering 69,000 bitcoins, valued at the time at nearly $3.6 billion.
The Evolved Apes incident serves as a stark reminder to all NFT investors. Before investing in any project, it is crucial to do your research and be careful.
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