In a recent twist in the NFT world, three British nationals face charges in the United States. They are linked to the “Evolved Apes” NFT scam. This incident involves a nearly 10,000-strong NFT collection still listed on OpenSea. Despite being listed, its floor price has dropped to a mere $7.60.
The Accused
The accused are Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan. They allegedly conspired to commit wire fraud and money laundering. The charges come from the U.S. Attorney’s Office in the Southern District of New York.
The Scam Unfolds
The defendants reportedly inflated the prices of 10,000 NFTs. They promised to develop a video game. However, after securing the funds, they abandoned the project and transferred the money elsewhere. This left investors in the lurch. According to U.S. Attorney Damian Williams, “Digital art may be new, but old rules still apply: making false promises for money is illegal.” He emphasized that “NFT fraud is no game, and those responsible will be held accountable.”
Details of the Scam
The scam saw nearly 800 Ether (ETH) — worth $2.7 million at the time — allegedly stolen. The scam started with the sale of Evolved Ape NFTs. Over $2 million was made on the first day, believed to be September 24, 2021.
The Aftermath
Less than two weeks later, on October 5, 2021, the Evolved Apes website was taken down. Investors were left stranded. Interestingly, Waleedh transferred the stolen funds to a personal wallet. The cryptocurrency exchange blocked him from withdrawing the funds. However, the exchange reenabled the withdrawal function after Waleedh falsely claimed he needed the funds for his grandmother’s cancer treatment.
Legal Consequences
The U.S. Attorney’s Office demands the defendants forfeit $875,850 in Tether (USDT) held in a specific wallet address. The maximum sentence for both money laundering and conspiracy to commit wire fraud is 20 years in jail.
Key Points
Here are the key points of the Evolved Apes NFT scam:
| Aspect | Details |
|---|---|
| Defendants | Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, Daood Hassan |
| Charges | Conspiracy to commit wire fraud and money laundering |
| Alleged Crime | Inflating NFT prices with false promises, abandoning project after securing funds |
| Total Stolen | Nearly 800 Ether (ETH), worth $2.7 million at the time |
| Initial Sales | Over $2 million on the first day, September 24, 2021 |
| Project Website | Promised a fighting game accessible only to Evolved Ape NFT holders |
| Website Shutdown | October 5, 2021 |
| Legal Actions | Defendants to forfeit $875,850 in Tether (USDT), each charge carries a maximum 20-year sentence |
Conclusion
The “Evolved Apes” NFT scam serves as a warning. The legal actions against Atcha, Waleedh, and Hassan underscore the seriousness of NFT fraud. The case is a reminder that even in the digital art world, fraudulent activities carry significant consequences.
Disclaimer
FAQ
The Evolved Apes NFT scam involves three British nationals who inflated the prices of a 10,000-strong NFT collection by promising to develop a video game, only to abandon the project and steal nearly 800 Ether (ETH), worth $2.7 million at the time.
The accused are Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan. They face charges of conspiracy to commit wire fraud and money laundering from the U.S. Attorney's Office in the Southern District of New York.
The defendants are required to forfeit $875,850 in Tether (USDT) held in a specific wallet address. Each charge carries a maximum sentence of 20 years in jail.
