Brooklyn DA Shuts Down 40 NFT Fraud Sites After Artist Loses $135K
Date: 2024-12-09 Author: Henry Casey Categories: IN WORLD
The Brooklyn District Attorney's Office announced the shutdown of 40 fraudulent sites posing as NFT marketplaces. The investigation was prompted by an elderly artist who lost $135,000 to fraud.
The victim contacted the alleged "art dealer" via LinkedIn. The scammer convinced him to put his works up for sale on a fake platform that mimicked the well-known OpenSea marketplace. The artist was then told that he had allegedly earned $300,000, but that he needed to pay a "fee" of $135,000 to receive the funds.
To raise the required amount, the victim completely emptied her retirement account, took out a loan, and used credit cards. It soon became apparent that the promised $300,000 was just a bait. The artist found himself in a difficult financial and emotional state.
The investigation led by District Attorney Eric Gonzalez revealed that the scammers created a network of websites specifically targeting artists. These websites copied well-known platforms and misled users by asking for crypto wallet details or offering to pay for non-existent services.
The criminals' financial transactions led to accounts on an exchange in Nigeria, where the funds were cashed out in local currency, making it difficult to return them. In addition, it turned out that the fake OpenSea website was also registered and paid for from Nigeria.
The prosecutor's office said that two other victims of the fraudulent scheme - artists from Georgia and California - lost funds in a similar way.
The prosecutor's office emphasized the importance of using only trusted NFT platforms for selling works of art. Artists were advised to be especially alert to phishing sites and emails that may disguise themselves as legitimate resources.
Key warning: Never give out your crypto wallet seed phrases to third parties. If an offer seems too good to be true, it is likely a scam. In such cases, it is important to do your own research and consult with industry peers.
Eric Gonzalez expressed hope that shutting down scam sites and raising public awareness will help prevent further scams.
