Evolved Apes NFT Scam Exposed: Creators Charged with Fraud

As a researcher who has closely followed the NFT market and its associated scams, I am deeply disappointed and frustrated by yet another example of fraudulent activity. The Evolved Apes collection is just the latest in a long line of rug pull schemes that have left innocent investors out of pocket.

An unscrupulous business deal surrounding the sale of unique digital assets called Non-Fungible Tokens (NFTs), specifically the Evolved Apes collection, has come to light, leaving those who invested in good faith at a loss.

Today, Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, all UK nationals, have been accused by the Southern District of New York (SDNY) of orchestrating a fraudulent scheme. The victims were allegedly lured into purchasing non-fungible tokens (NFTs) called “Evolved Apes” collection.

— Inner City Press (@innercitypress) June 6, 2024

Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan, three individuals from the United Kingdom, are accused of conspiring to carry out wire fraud and money laundering. The threesome reportedly promised to create a video game connected to an NFT collection but absconded with investors’ funds shortly after receiving them in what is referred to as a “rug pull” scheme.

As a researcher investigating this matter, I’ve uncovered some serious allegations regarding the actions of Atcha, Waleedh, and Hassan. It appears that they orchestrated what is commonly referred to as a “rug pull” scheme in the world of NFTs (Non-Fungible Tokens).

The defendants ran a project where they sold NFTs representing digital cartoon ape images. They intended to use the earnings to enhance their video game as previously announced. After garnering significant financial support, including from buyers in the Southern District of New York, the defendants unexpectedly shut down the project’s website and failed to honor their commitments, keeping the funds for themselves instead.

In spite of the creators’ absence and the exposure of their deceitful business, people still actively traded Evolved Apes NFTs on marketplaces such as OpenSea.

Following the previous situation, a community-initiated undertaking named Fight Back Apes came into being. In contrast to Evolved Apes, this endeavor utilizes a multi-signature digital wallet to maintain openness and avoid recurring mishaps by requiring multiple approvals for transactions.

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2024-06-07 03:16