A developer of the NFT project reportedly could receive a prison term from the US Ministry of Justice of up to 40 years.
This report was due to fraudulent activities that caused many investors to lose more than $2 million.
Baller Ape NFT Developer Sued by US Government
The Baller Ape NFT project developer is rumored to have committed fraud through a rug pull and ran away with project revenues of $2.6 million.
The scammer has been caught and will be sentenced to 40 years.
This scam occurred in 2021 when the leading developer of Baller Ape NFT, Le Anh Tuan, from Vietnam, succeeded in making his project famous and bought by many NFT investors.
Baller Ape NFT is the biggest NFT scam ever due to the funds raised by this scam.
This case is also one of the more complicated cases and is still under investigation, so it continues to get new charges of wrongdoing.
The leading developer and owner of the NFT project, Le Anh Tuan, was reportedly charged with fraud and money laundering.
“According to the results of the investigation, one day after the Baller Ape NFT was successfully sold, Tuan and the team did a rug pull by ending the project suddenly, deleting the official website, and stealing investors’ money.” said a representative for the US Department of Justice.
Tuan is also accused of money laundering using a “chain-hopping” method in which he transfers the stolen funds to multiple blockchains, making tracking difficult.
He also converted the funds he stole into cryptocurrencies to make tracking difficult and spread the funds across multiple wallets.
Many Other Crypto Cases
Baller Ape NFT is not the only project the US Ministry of Justice is currently prosecuting.
Because, in the publication of the lawsuits given, there are six suspects in four cases, and Baller Ape NFT is one of those four cases.
All of these cases are fraud affiliated with or on behalf of a crypto project.
EmpiresX, a crypto investment company, is facing lawsuits from the American government for illegally holding a stock sale. The company is also accused of money laundering.
Involved in this case is Titanium company, a blockchain infrastructure service provider, for providing false testimonials and information.
This company commits fraud by claiming ties to the American government and Apple companies to create false credibility when carrying out its initial coin offering or Initial Coin Offering.
Lastly is the Circle Society, which is undergoing prosecution based on crypto-related fraud.
Please note that with the entry of crypto into the bear market, many crypto-related companies will be caught for manipulation or fraud.
This condition occurs because with the end of the bull market, all profits will decrease, and the phenomenon of profits that were previously used as a protection for fraud and manipulation operations will disappear.
So that now it can be used for investors and prospective project owners to learn how to build and choose good projects and stay away from breaking the law while still adopting innovation.
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