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NFTs have been both a technological revolution and a breeding ground for fraud. Among the countless success stories there are numerous scams. Undead Apes rug pull is one of those. This $400,000 scam captivated the Solana blockchain community in 2022 before unraveling into a web of deceit, legal repercussions, and ultimately, tragedy. The case highlights the urgent need for greater accountability in the rapidly expanding world of NFTs.
What Are Undead Apes?
In 2022, there was a launch of three highly anticipated NFT collections on Solana Blockchain: Undead Apes, Undead Lady Apes, and the partially launched Undead Tombstone. These NFTs initially sold for just $5 each, but skyrocketed in value, with some reaching $360 apiece. The collections raked in approximately $400,000, attracting hundreds of investors.
Behind the success were developers Berman Jerry Nowlin Jr. (21) and Devin Alan Rhoden (25), who used false promises to lure in buyers. They claimed partnerships with major companies and outlined plans for reinvesting profits and delivering long-term benefits to NFT holders—none of which materialized.
What Was The Scam About?
In April 2022, shortly after the release of the Undead Apes collection, the developers abruptly abandoned their projects. They deleted all communication channels, including Discord and Twitter, leaving investors stranded with worthless assets. The Department of Justice (DOJ) later classified this scheme as a classic “rug pull.”
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According to the DOJ, a rug pull occurs when developers abandon a cryptocurrency or NFT project, take investor funds, and leave participants with valueless tokens.
Tornado Cash Crypto Laundering
The developers didn’t just disappear with the money; they took steps to obscure their tracks. Using Tornado Cash, a now-banned cryptocurrency mixer, they laundered the funds. They also engaged in chain-hopping, moving funds between Solana and Ethereum to make their transactions harder to trace.
Eventually, investigators followed the money trail to Nowlin’s Alabama bank account. Both developers were charged with conspiracy to commit wire fraud and money laundering. Rhoden pleaded guilty in May 2024, while Nowlin took his case to trial, resulting in a guilty verdict in November 2024.
A Tragic End Of The Story
As Nowlin awaited sentencing, his family reported a drastic change in his demeanour. The young developer became deeply withdrawn and struggled with depression following his conviction. In December 2024, Nowlin died by suicide at his home in Alabama.
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Nowlin’s family believes he was manipulated into participating in the scam. His brother, Daniel Barker, described him as a “naïve kid” who lacked awareness of the scheme’s broader implications. However, the DOJ found evidence linking Nowlin to money laundering activities, including the use of crypto mixers and blockchain-hopping techniques.
DYOR
This case underscores the risks of investing in unregulated NFT projects. Fraudulent schemes like rug pulls are alarmingly common, but there are steps investors can take to protect themselves:
- Research thoroughly. Verify the legitimacy of team members, partnerships, and project roadmaps before investing.
- Look for transparency. Trustworthy projects often lock liquidity or publicly disclose how funds will be used.
- Be cautious of hype. If something seems too good to be true, it probably is.
For the victims of the rug pull, justice has been served, but recovering their lost investments remains unlikely. Meanwhile, the NFT market continues to grow, blending groundbreaking innovation with the risks of unregulated speculation.
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Conclusion
The $400,000 Undead Apes rug pull is a sobering reminder of the vulnerabilities in the NFT market. As the industry grows bigger there’s also a greater need for accountability and transparency to prevent future scams and ensure a safer environment for both developers and investors.
