Three British citizens linked to the “Evolved Apes” NFT scam have been indicted in the U.S. for allegedly scheming to commit wire fraud and money laundering.
The accused, Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, purportedly inflated the prices of 10,000 NFTs with false promises of developing a video game, only to vanish with the funds, as per the U.S. Attorney’s Office in the Southern District of New York. U.S. Attorney Damian Williams emphasized that while digital art is a new domain, deceptive practices for financial gain remain unlawful. FBI Assistant Director James Smith condemned the defendants for betraying the trust of buyers. Approximately 800 Ether, valued at $2.7 million at the time, was allegedly misappropriated.
The defendants allegedly earned over $2 million from Evolved Ape NFT sales, with the project’s website featuring sections to lend it credibility. However, the website was shut down shortly after its launch, leaving investors empty-handed.
Notably, Waleedh encountered obstacles when attempting to withdraw the stolen funds, falsely claiming they were for his grandmother’s cancer treatment. The U.S. Attorney’s Office seeks the forfeiture of $875,850 in Tether held in a specific wallet address. Each defendant faces a maximum prison term of 20 years for wire fraud and money laundering conspiracy charges in New York.
June 2024, Cryptoniteuae
