Brooklyn Artist Loses $120,000 in Crypto Scam Targeting NFT Creators

Artist Victim of Elaborate Crypto Scam

A Brooklyn artist, Douglas Newton, fell victim to a sophisticated crypto scam that cost him over $120,000. The scam promised huge profits from NFTs, digital tokens representing his artwork, leading him to invest a significant sum.

Scammers Exploit Artists Through Fake NFT Sites

The scammers approached Newton on LinkedIn, posing as allies in the art world. They directed him to a website purportedly linked to the legitimate NFT platform, Open Seas. However, investigations revealed that it was part of a network of 40 fraudulent sites preying on artists seeking to sell their work in the digital realm.

Brooklyn DA Takes Action Against Cryptocurrency Scams

Brooklyn District Attorney Eric Gonzalez’s Virtual Currency Unit traced the illicit transactions to a Nigerian cash account. This case is one of 150 similar investigations undertaken by the unit in the past year, amounting to $40 million in losses for Brooklyn residents. The unit was successful in seizing the fraudulent sites but faces challenges in recovering funds sent abroad.

Protecting Yourself From Crypto Scams

DA Gonzalez advises the public to exercise caution when dealing with crypto sites, avoid high-pressure sales tactics, and refrain from sharing sensitive information such as cryptocurrency seed numbers. Victims of crypto scams are urged to report incidents promptly to increase the likelihood of fund recovery.

Moving Forward With Caution

While Newton regrets his experience with crypto scams, he remains committed to creating and selling art through trusted platforms. He encourages others to be vigilant and rely on established channels for their online transactions.