Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan allegedly inflated prices of 10,000 NFTs with false promises of developing a video game.

The U.S. Attorney’s Office in the Southern District of New York claims they then diverted funds and abandoned the project. Let’s explore more about this NFT Scam.

NFT Scammers Charged with Fraud

U.S. Attorney Damian Williams stressed that laws against fraud apply to digital NFTs. He underscored that NFT fraud is a serious offense warranting accountability. FBI’s James Smith said deceiving customers breaches trust and ethics.

The defendants reportedly generated over $2 million from Evolved Apes NFT sales on September 24, 2021, during the peak of the “NFT summer.” Their website featured sections like “roadmap” and “phases,” creating an appearance of legitimacy.

“Phase 5” falsely claimed a forthcoming fighting game exclusive to Evolved Ape NFT holders. However, the site was abruptly taken down less than two weeks later, leaving investors empty-handed.

Source: Cointelegraph

Notably, Waleedh attempted to transfer stolen funds to a personal wallet but faced a temporary block by the cryptocurrency exchange pending an investigation into the fund source. Allegedly, he falsely claimed to need funds for his grandmother’s cancer treatment to expedite the withdrawal process.

The U.S. Attorney’s Office seeks forfeiture of $875,850 in Tether (USDT) held in a specified wallet address, “0x519…6ed70.” The charges of wire fraud and money laundering each carry a maximum 20-year prison sentence in New York, highlighting the severity of the allegations against the defendants.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.