DOJ Files Charges Against Baller Ape Club 'Rug Pull'

The Department of Justice this afternoon announced criminal charges against the creator of the Baller Ape Club NFT collection for orchestrating a so-called 'rug pull.' From a report: The charges, announced alongside those in three other cryptocurrency fraud cases, mark the second time that federal prosecutors have gone after an NFT 'rug-pull' scheme, 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. Le Anh Traun, a Vietnamese national, is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering. Traun allegedly collected $2.6 million from Baller Ape NFT buyers, only to shortly thereafter delete the organization'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, in a practice known as 'chain-hopping.' If convicted, Traun could face up to 40 years in prison.

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