Brooklyn DA Shuts Down 40 NFT Websites After 85-Year-Old Artist Loses $135K
In a significant crackdown, Brooklyn's District Attorney's Office has shut down 40 fraudulent NFT marketplace websites after an 85-year-old artist lost $135,000 to a sophisticated scam. The victim was targeted by a scammer posing as an art dealer on LinkedIn, who persuaded the artist to mint his work on a counterfeit NFT platform that mimicked the reputable OpenSea.
The scammer falsely claimed that the artist had earned $300,000 in profits from his NFTs and demanded a $135,000 "fee" to release the funds. In an attempt to meet the demand, the artist liquidated his retirement savings, used credit cards, and even took out a loan. Unfortunately, the promised payment was a fabrication, leaving the artist financially devastated.
The investigation revealed that the scam network primarily operated out of Nigeria. Some of the fraudulent websites utilized phishing tactics, tricking users into entering their crypto wallet seed phrases, allowing scammers to steal their digital assets. The stolen funds were traced to accounts at a Nigerian exchange, where they were quickly converted to local currency, making recovery efforts nearly impossible.
The DA’s office emphasized the growing risk of cryptocurrency scams, urging artists and the public to exercise caution when engaging with NFT platforms. Investigators have warned that scams targeting vulnerable victims, often demanding upfront fees for supposed earnings, are becoming increasingly common.
This case also highlights the broader trend of cybercrime involving cryptocurrency, with recent incidents including a sophisticated hacking operation that stole over $11 million in crypto and sensitive data from multiple individuals and organizations worldwide.
As scams in the crypto space continue to rise, authorities are urging individuals to do their research and remain cautious, especially when dealing with unfamiliar platforms.
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