Accused of committing a huge “rug pull”, this young French web3 entrepreneur is risking a lot

JVTech News Accused of committing a huge “rug pull”, this young French web3 entrepreneur is risking a lot

The young entrepreneur Aurélien Michel was arrested yesterday in the United States. The man is accused in particular of having committed a great “pull to the carpet” taking advantage of the enthusiasm around the web3.

A multi-million dollar scam

On his way to Dubai, his place of residence, the Frenchman Aurélien Michel had the unpleasant surprise of being arrested at John F. Kennedy airport in New York. The young 24-year-old entrepreneur is the subject of an accusation of “carpet shooting” which led to a 2.75 million euro scam.

The term “rug pull” refers to the idea that these developers are pulling the rug out from under investors by vanishing with their money. This expression is often used in the world of cryptocurrencies and NFTs. It describes a situation where one of the members of a web3 project development team runs away with the money invested by the users without delivering the promised products or services. These scams are usually in place when the cryptocurrency industry is booming and often mislead less knowledgeable users of the industry.

In this case, Aurélien Michel is accused of committing a “pull of the carpet” through his collection of NFTs: Mutant Ape Planet. The collection is inspired by the famous Bored Ape Yacht Club (BAYC) series.

As with this, to make the jpegs in NFT more attractive, the contractor resorted to multiple promises to establish long-lasting privileges for the token owners. When run smoothly, this process generally allows the value of the tokens to appreciate over time.

Only, more than a year after the collection’s release, the famed rewards and perks are still desired among Mutant Ape Planet NFT holders. However, Aurélien Michel never kept his promises and simply kept the money raised thanks to the sale of these Mutant Ape Planet NFTs.

“Buyers of Mutant Ape Planet NFT thought they were investing in a trendy new collectible token, but were duped and received none of the promised benefits. say the American authorities.

While he promised the full package of an NFT collection (gifts, exclusive features, perks, clothing collection), the entrepreneur likely cut all communication with buyers of the NFT project by walking out with cash according to the US Department of Justice.

Was Mutant Ape Planet a collection for “rug pull” investors?

The main interested party, however, denies the facts, indicating at least a different version. The French entrepreneur explains that at one point the Mutant Ape Planet investor community had become “too toxic”, which hastened the end of the project.

While this argument in no way condones the deceptive marketing used, it testifies to a very real phenomenon. With the NFT speculative bubble, many collections have emerged that have wanted to give life to their virtual project through a “roadmap”, a roadmap that includes several important development phases. Hoping to bring forth the new bluechip (respectable collection), multiple collectors of various collections have experienced disappointment when their favorite NFT project hasn’t met the expected success and accompanying value appreciation.

While these cases are all new to the justice system, they seem to already understand the details.

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