Rug Pulls Are Now Officially Outlawed in the US
TL;DR
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Aurelien Michel, creator of the ‘Mutant Ape Planet’ NFT challenge, plead responsible to wire fraud costs, turning into the primary scammer to be convicted (within the US) for rug pulling an NFT challenge.
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Ol’ Mish raked in ~$3M from the gross sales of Mutant Ape Planet NFTs, after making the promise to consumers that they might get entry to giveaways, merchandise collections, and tokens with staking options in return – they didn’t.
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Aurelien now faces as much as 5 years in federal jail.
Full Story
Rug pulls.
They are a story as previous as time:
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Dad says he’ll take you tenting (he does not)
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Mother says “now we have Coca Cola at residence” (it is RC)
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Your important different tells you “you possibly can pull off a Fedora” (you possibly can’t. Solely Britney can)
This is the factor although:
Whereas these are all egregious erosions of belief – none of them are crimes.
However on the planet of crypto (particularly, NFTs), this type of unfulfilled promise – when paired with the trade of cash – turns into wire fraud.
That was the concept at the very least – till Tuesday – when it grew to become official (awww ❤️):
Aurelien Michel, creator of the ‘Mutant Ape Planet’ NFT challenge, plead responsible to wire fraud costs, turning into the primary scammer to be convicted (within the US) for rug pulling an NFT challenge.
This is what he did:
Ol’ Mish raked in ~$3M from the gross sales of Mutant Ape Planet NFTs, after making the promise to consumers that they might get entry to giveaways, merchandise collections, and tokens with staking options in return.
(They did not).
So as to add insult to harm, Aurelien was even daring sufficient guilty the gathering’s ‘poisonous’ group for his resolution to run off with their cash:
“We by no means supposed to rug, however the group went approach too poisonous”
Luckily, a group’s ‘poisonous’ vibe is not a sound authorized protection, and Aurelien now faces as much as 5 years in federal jail.
