A senior member of the U.S. Air Force was recently apprehended for his involvement in a deceptive Non-Fungible Token (NFT) scheme, marking a significant event in the realm of NFT-related criminal activities. The officer, serving as a cyber analyst, was implicated in a fraudulent operation known as a "rug pull," where digital assets are hyped to swindle investors before abruptly abandoning the project.
Court filings reveal that the officer, Devin Alan Rhoden, was actively promoting the NFT collection named UndeadApes on a Discord channel. This collection was misleadingly linked to the renowned Bored Ape Yacht Club NFTs. Under the alias Deviinz, Rhoden exaggerated the worth of these NFTs, falsely suggesting a collaboration with another NFT group, Stoned Ape Crew, thereby inflating their perceived value. However, Stoned Ape Crew later clarified that no partnership existed, leading to a plummet in the value of UndeadApes NFTs, essentially rendering them valueless.
Rhoden's fraudulent activities included withdrawing $80,000 from his Coinbase account in April 2022, with a significant portion of this sum derived from the scam. The following month saw Rhoden and his spouse acquiring a $300,000 property in Florida, financed in part by the proceeds of this fraud. Investigations were furthered due to the link between Rhoden's Coinbase account and his driver's license, enabling the issuance of a search warrant for his Google account. This search uncovered numerous incriminating searches related to NFT fraud and wire fraud.
Discord records suggest that Rhoden boasted about the funds he extracted from the NFT operation. Despite this, in a subsequent interview with the Air Force Office of Special Investigations, Rhoden, while admitting to offering his services to NFT developers, denied any fraudulent intentions. He recognized, however, that his expertise as a cyber analyst might be applicable in the burgeoning Web3 domain.
Currently released on a $20,000 bond, Rhoden's legal proceedings are yet to be scheduled. His case emerges amidst a turbulent period for NFTs, characterized by closures of NFT marketplaces like GameStop's and a surge in wire-fraud legal cases. The outcome of Rhoden's case is expected to significantly influence the future landscape of digital asset trading.
Jean Dubreil