NY attorney files 3 lawsuits linked to ‘Evolved Apes’ NFT scam

Three British nationals have been indicted in the United States on charges of wire fraud and money laundering in connection with the “Carpet Pool” scam by “Evolved Apes.”

The defendants Mohammad-Amin Acha, Mohammad Relaz Waleed and Dawood Hassan paid a price of 10,000 NFT before transferring the money and exiting the project. The Southern District of New York said in a June 6 statement.

“Digital art may be new, but old rules still apply: Making false promises for money is illegal. […] NFT fraud is not a game, and those responsible will be held accountable,” said United States Attorney Damian Williams.

FBI Assistant Director James Smith added, “Not only does it reflect poor business integrity, but it also violates the trust that consumers place in sellers when they purchase a product.

In total, about 800 Ether (ETH) – worth $2.7 million at the time – were stolen from the running rig.

“They allegedly took investors' money, never raised the game and pocketed the proceeds,” Williams said.

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Acha, Waledh and Hassan earned more than $2 million from Evolved Ape NFT sales on the first day, which the US Attorney's Office believes took place on September 24, 2021 — in the midst of “NFT summer.”

His website lists “road map” and “levels” subsections to make the NFT project look legitimate, the US Attorney said. “Level 5” will launch a fighting game accessible only to Evolved Ape NFT holders.

But Evolved Apes' website went down less than two weeks later, on October 5, 2021, causing investors to wait.

Ironically, Wally transferred the stolen funds to a private and secure wallet address, but the cryptocurrency exchange prevented him from withdrawing the funds.

He initially planned to investigate the source of the money, but the customer service team restarted the withdrawal process after Wald falsely claimed the money was needed for his grandfather's cancer treatment, according to the U.S. Attorney's Office.

The United States Attorney's Office wants the three defendants to forfeit $875,850 in Tether (USDT) wallet address “0x519…6ed70”.

In New York, wire fraud and money laundering are each punishable by up to 20 years in prison.

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