The United States Attorney for the Southern District of New York has announced the indictment of three UK citizens for their involvement in the $3 million 'Evolved Apes' NFT scam, charging them with wire fraud and money laundering.

The scam, which unfolded in 2021, involved the anonymous developer of the 'Evolved Apes' NFT project disappearing with the project's funds, totaling around $2.9 million in Ether (ETH). The project promised a collection of 10,000 unique NFTs but failed to deliver on its commitments, resulting in investors losing their funds.

After several red flags emerged, investors grew concerned about the legitimacy of the project. Despite the warnings, many investors believed in the project's potential, only to find themselves victims of a rug pull.

Now, three years later, the identities of the suspected developers have been revealed. Mohamed-Amin Atcha, Mohamed Rolaz Waleedh, and Daood Hassan, all UK nationals, are accused of laundering the misappropriated funds through various cryptocurrency transactions to conceal their illicit gains.

The suspects face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a potential prison sentence of up to 20 years if convicted.

US Attorney Damian Williams emphasized the importance of holding scammers accountable for their fraudulent actions, stating that making false promises for financial gain, whether in traditional markets or the digital realm, is illegal. Similarly, FBI Assistant Director in Charge James Smith reiterated the FBI's commitment to pursuing those who perpetrate fraudulent schemes.

It's notable that the NFT market has seen a decline since 2021, with many collections losing their value. A recent report revealed that the majority of NFTs are now worthless, marking a significant shift from the market's previous hype.