3 individuals associated with Evolved Apes NFT scam charged by NY Attorney

Three individuals from Britain associated with the “Evolved Apes” nonfungible token “rug pull” scam have been indicted in the United States on charges of conspiring to commit wire fraud and money laundering.
The accused, Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, allegedly raised the prices of 10,000 NFTs with false promises of developing a video game before absconding with the funds, the United States Attorney’s Office in the Southern District of New York stated in a press release on June 6.
“Although digital art is a new concept, the laws against making false promises for money remain unchanged. NFT fraud is a serious matter, and those responsible will be held accountable,” stated U.S. Attorney Damian Williams. FBI Assistant Director James Smith added that abandoning a promise not only reflects poorly on business integrity but also violates the trust that buyers have in sellers.
The Evolved Apes are still available on the NFT marketplace OpenSea. It was reported that nearly 800 Ether (ETH) worth $2.7 million at the time was allegedly stolen from the rug pull. “They allegedly took investor funds, never developed the game, and pocketed the proceeds,” Williams stated.
Atcha, Waleedh, and Hassan reportedly made over $2 million from the sales of Evolved Ape NFTs on the first day, which the U.S. Attorney’s Office believes took place on September 24, 2021, during “NFT summer.” The U.S. Attorney claims that the project’s website listed “roadmap” and “phases” to give the appearance of legitimacy. “Phase 5” claimed that Evolved Apes would launch a fighting game that could only be accessed by Evolved Ape NFT holders. However, the Evolved Apes website was taken down less than two weeks later on October 5, 2021, leaving investors in a difficult position.
Interestingly, Waleedh transferred the stolen funds to a personal wallet address, but the cryptocurrency exchange blocked him from withdrawing the funds. The exchange initially planned to investigate the source of the funds but later reenabled the withdraw function after Waleedh falsely claimed that he needed the funds to pay for his grandmother’s cancer treatment.
The U.S. Attorney’s Office is seeking to have the three defendants forfeit $875,850 in Tether (USDT) held in wallet address “0x519…6ed70.” The charges of conspiracy to commit wire fraud and money laundering each carry a maximum 20-year prison sentence in New York.