US Dept of Justice Files Charges Against Baller Ape Club NFT Rug Pull
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In a statement released Thursday, the US DoJ accused a Vietnamese national Le Anh Tuan of committing wire fraud and one count of conspiracy to commit international money laundering using the "Baller Ape" NFTs.
Tuan allegedly collected $2.6 million from Baller Ape NFT buyers, only to shortly delete the project's website and launder the funds. According to the Justice Department, he converted the ill-gotten gains into different cryptocurrencies and moved them across multiple blockchains. If convicted, Tuan could face up to 40 years in prison.
Charging For An NFT Scam The Second Time
The charges against Baller Ape mark the second time the US DoJ has investigated alleged rug pulls in which an NFT project's creators sell NFTs on false promises of community benefits and utility, only to abandon the project and make away with investors' funds.
The Justice Department also announced separate charges against three individuals who allegedly raised more than $100 million in a global crypto Ponzi scheme, a fraudulent initial coin offering that stole $21 million from misled investors, and an elaborate crypto commodities scheme that saw a man promise 600% returns to investors he wooed with meetings at Hollywood Hills homes he did not own.
