US Indicts Three Individuals in $2.7 Million NFT Rug Pull Case

In a significant crackdown on cryptocurrency fraud, the US Attorney’s Office for the Southern District of New York has charged three UK nationals in connection with a notorious $2.7 million NFT rug pull scam involving the project "Evolved Apes." The defendants face serious allegations, including wire fraud and money laundering.

In 2021, the "Evolved Apes" NFT project was launched, promising a video game and collectible NFTs. The project raised 798 Ethereum (approximately $2.7 million). However, the developers, Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, failed to deliver on their promises and instead siphoned off the funds. The US Attorney’s Office has indicted the three individuals responsible, citing wire fraud and money laundering. The US Attorney Damian Williams stated, “the defendants ran a scam to drive up the price of digital artwork through false promises about developing a video game. They allegedly took investor funds, never developed the game, and pocketed the proceeds.”

Three UK nationals, Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, have been charged with wire fraud and money laundering in connection with the "Evolved Apes" NFT scam. The project raised $2.7 million but failed to deliver on its promises. The case underscores the legal risks associated with fraudulent NFT projects.