The Brooklyn District Attorney\u2019s Office has dismantled 40 fake NFT marketplace websites following a case where an 85-year-old artist was scammed out of $135,000. The investigation, conducted by the office\u2019s Virtual Currency Unit, uncovered a web of fraudulent sites designed to exploit artists.<\/p>\n\n\n\n
The scam began when the victim was contacted on LinkedIn by someone pretending to be an art dealer. The scammer convinced the artist to mint his work on a counterfeit NFT platform designed to mimic OpenSea, a legitimate NFT marketplace.<\/p>\n\n\n\n
The artist was led to believe he had earned $300,000 in profits. However, to access the funds, he was asked to pay a $135,000 \u201cfee.\u201d To cover the amount, the victim liquidated his retirement account, charged his credit cards, and took out a loan.<\/p>\n\n\n\n
Once the payment was made, the promised payout never materialized. The artist was left “emotionally and financially devastated,” according to the Brooklyn DA’s office.<\/p>\n\n\n\n
Brooklyn District Attorney Eric Gonzalez revealed that the tactics used in this scam exposed a broader network of fraudulent websites aimed at artists.<\/p>\n\n\n\n
\u201cOur investigation uncovered a sophisticated scheme preying on creators,\u201d said Gonzalez. \u201cBy shutting these sites down and raising awareness, we hope to protect others from falling victim to such scams.\u201d<\/p>\n\n\n\n
The Virtual Currency Unit found that funds from the scams were funneled to accounts in Nigeria, where they were converted into local currency. The fake NFT sites also encouraged visitors to enter their crypto wallet seed phrases, granting scammers access to their digital assets.<\/p>\n\n\n\n
The Brooklyn DA\u2019s Office offered the following advice to help artists and crypto users avoid falling prey to similar scams:<\/p>\n\n\n\n
The DA\u2019s office also noted that two additional artists from Georgia and California fell victim to the same scam. All three cases underline the growing sophistication of online fraud in the NFT and crypto space.<\/p>\n\n\n\n
By dismantling these sites and raising awareness, authorities aim to protect artists and crypto users from similar schemes in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Brooklyn District Attorney\u2019s Office has dismantled 40 fake NFT marketplace websites following a case where an 85-year-old artist was scammed out of $135,000. The investigation, conducted by the office\u2019s Virtual Currency Unit, uncovered a web of fraudulent sites designed to exploit artists. Artist Targeted by Fake NFT Marketplace The scam began when the victim […]<\/p>\n","protected":false},"author":6,"featured_media":1501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2,43],"tags":[],"class_list":["post-12617","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-general-news"],"acf":[],"yoast_head":"\n