🌋 When NFTs Turn Deadly: The Tragic Case of Fraud and Loss
posted 3 Jan 2025
The NFT market remains plagued by fraudulent schemes, often with devastating outcomes. The recent case of Berman Jerry Nowlin’s death illustrates how these schemes can shatter trust and lead to tragic consequences.
In 2022, Nowlin and his childhood friend Devin Alan Rhoden launched two seemingly successful NFT projects, Undead Apes and Undead Lady Apes, earning approximately $400,000. However, their third project, Undead Tombstone, was abruptly canceled, with all associated social media accounts deleted.
The U.S. Department of Justice categorized their actions as a “rug pull”—a common fraudulent scheme in the NFT space. A federal jury later convicted Nowlin of wire fraud and money laundering.
NFT from the Undead Apes collection. Source: OpenSea
This case gained public attention not because of the scale of the fraud (investors lost a relatively modest $135,000), but due to its tragic conclusion. Jerry Nowlin, according to his family, took his own life on December 21, 2024, shortly before he was to be sentenced to up to five years in prison. His mother revealed that his greatest fear wasn’t the prosecution itself, but the inability to continue working on his digital projects, which had become his life’s passion.
Nowlin’s lawyer argued that he was only responsible for the technical aspects of the projects and was unaware of Devin Alan Roden’s fraudulent intentions, as Roden handled marketing and investor communications. Furthermore, Nowlin, diagnosed with autism spectrum disorder, reportedly had no direct interactions with clients and spent most of his time designing NFT sketches.
While Nowlin’s family asserts that he was manipulated and was more of a victim than a perpetrator, the Department of Justice presented evidence linking him to money laundering via crypto mixers and concealed transactions, with proceeds directly deposited into his bank account.
Jerry Nowlin. Source: tampabay
Nowlin’s tragedy stands apart from other cases because one of the perpetrators of the fraudulent scheme ultimately paid with his life. For most scammers, the consequences are limited to financial losses for their victims. Yet, rug pull schemes remain a prevalent means of easy profit, with many culprits still managing to escape justice.
In the lawless "Wild West" of the NFT market, Nowlin's story is a sobering reminder that behind digital assets are real human lives, and the repercussions can be far graver than they seem at first glance.
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