Three United Kingdom nationals have been charged in connection with a brazen NFT scam that netted over $1 million, with prosecutors alleging they ran a classic ‘rug pull’ operation that left hundreds of investors duped.
MOHAMED-AMIN ATCHA, 23, MOHAMED RILAZ WALEEDH, 23, and DAOOD HASSAN, 23, all from the United Kingdom, were charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each carrying a maximum sentence of 20 years in prison.
The indictment alleges that the trio created and promoted an NFT project called ‘Evolved Apes’ that involved the marketing of digital images of cartoon apes. They allegedly promised to use funds raised from selling the NFTs to develop a videogame based on the NFTs, which they claimed would increase their value.
However, after selling the NFTs and collecting large sums from purchasers, including in the Southern District of New York, they quickly shut down the project’s website and kept the funds without developing the promised videogame. The defendants then laundered the misappropriated funds through multiple cryptocurrency transactions to their own personal accounts to conceal their ill-gotten gains.
U.S. Attorney Damian Williams praised the FBI for their outstanding investigative work, saying, ‘Digital art may be new, but old rules still apply: making false promises for money is illegal. As we allege, thousands of people believed these false promises and were tricked into buying these NFTs, including here in the Southern District of New York. NFT fraud is no game, and those responsible will be held accountable.’
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit, with Assistant U.S. Attorneys Samuel L. Raymond and Josiah Pertz leading the prosecution. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Cybercrime
- Source: Official Source ↗
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