Bitrabo Editorial
Three UK citizens have been indicted by the US Attorney for the Southern District of New York in connection with a $3 million NFT scam involving the ‘Evolved Apes’ project. The accused are facing charges related to wire fraud and money laundering.
Overview of the ‘Evolved Apes’ NFT Scam
A developer known as Evil Ape disappeared with the funds from the ‘Evolved Apes’ NFT project in 2021, which was described as a collection of unique NFTs. The project raised approximately $2.9 million in Ether within a week, promising a community a fighting game that was never delivered. Eventually, the project team emptied the wallet, vanished, and removed all traces of the project.
Investors had observed warning signs leading up to the rug pull, including unprofessional announcements and a lack of engagement from the team. Despite these red flags, investors underestimated the project’s inexperience.
Criminal Charges Against the Suspects
The three individuals identified as Mohamed-Amin Atcha, Mohamed Rolaz Waleedh, and Daood Hassan are accused of laundering embezzled funds through various cryptocurrency transactions. They have been charged with wire fraud and money laundering conspiracy, each carrying a potential 20-year prison sentence upon conviction.
US Attorney Damian Williams emphasized the importance of holding fraudulent actors accountable, regardless of the industry, highlighting the seriousness of NFT fraud. Similarly, FBI Assistant Director James Smith reiterated the commitment to pursuing scammers and upholding consumer trust.
There has been a significant downturn in the NFT market since 2021, with many collections losing their initial value. Reports indicate a sharp decline in investor interest, with a vast majority of NFTs now deemed worthless compared to their previous highly valued status.
Artwork and collectibles that once commanded high prices are now valued at significantly lower amounts, reflecting the changing landscape of the NFT market.
