The Brooklyn District Attorney’s Office recently dismantled 40 fraudulent NFT marketplace websites linked to a scam that defrauded an 85-year-old artist of $135,000.
Scammer Targets Elderly Artist Through Fake NFT Platform
An elderly artist fell victim to a scam after a fraudster posed as an art dealer on LinkedIn. The scammer convinced the artist to mint his artwork on a counterfeit NFT platform mimicking the trusted OpenSea website.
Fake Earnings Lead to Financial Devastation
The fraudster claimed the artist had earned $300,000 in profits. However, the scammer demanded a $135,000 fee to release the funds. To meet this demand, the artist liquidated his retirement savings, maxed out his credit cards, and took out a loan. Unfortunately, the promised payment never arrived, leaving him financially ruined.
District Attorney Eric Gonzalez stated, “Scams like these often prey on vulnerable individuals by luring them with fake earnings and demanding fees. By uncovering this network and shutting down the fraudulent websites, we aim to protect others from falling into similar traps.”
Funds Traced to Nigerian Exchange
Investigators tracked the stolen funds to accounts at a Nigerian cryptocurrency exchange. Most of the funds were converted into local currency, making recovery nearly impossible. Additionally, the fake NFT platforms used phishing tactics, urging victims to enter their wallet seed phrases, which gave scammers full access to their digital assets.
More Victims Fall for the Scam
Two other artists, one from Georgia and another from California, also became victims of this operation. The DA’s Virtual Currency Unit encouraged artists to exercise caution and research NFT platforms thoroughly. “If it seems too good to be true, it probably is,” they advised. Consulting with fellow artists can also provide valuable insights.
Similar Crypto Fraud Cases Emerge
This scam mirrors another case where hackers stole $11 million in cryptocurrency and sensitive data across multiple countries. According to court filings, one victim lost over $6.3 million after hackers compromised their email and digital wallets.
By dismantling these fraudulent domains, the Brooklyn DA’s Office underscores the need for vigilance within the cryptocurrency and NFT spaces. Transitioning to safer practices can help individuals avoid devastating financial losses.
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