MacDill airman gets 5 years of probation in ‘Undead Apes’ blockchain fraud

Devin Rhoden, a staff sergeant at MacDill Air Force Base, has been sentenced to five years of probation for his role in a cryptocurrency fraud scheme involving the "Undead Apes" NFT collections. The scheme, which defrauded investors of approximately $135,000, was characterized as a "rug pull," where developers vanished with investors' funds after generating hype around the NFTs. Rhoden, who pleaded guilty to conspiracy to commit wire fraud and money laundering, was recognized for providing substantial assistance to federal prosecutors, which was instrumental in convicting his co-defendant, Berman Jerry Nowlin. U. S.

District Judge William Jung emphasized the importance of Rhoden's cooperation during the sentencing. The fraudulent NFT collections initially attracted attention and drove resale values as high as $360, but they ultimately resulted in significant losses for hundreds of investors. This incident raises concerns about the increasing prevalence of scams within the cryptocurrency landscape, prompting federal authorities to enhance their focus on investor protection. As the digital currency market continues to expand, the need for vigilance and awareness among investors is more critical than ever. This case serves as a cautionary tale about the potential risks associated with investing in blockchain technology and NFTs.