Cryptocurrency Scam Targeting Artists Uncovered in Brooklyn

Victim falls for online NFT art marketplace scam

An elaborate cryptocurrency scam targeting artists has been exposed in Brooklyn after an elderly painter lost his life savings of $135,000 to a fraudulent NFT art marketplace.

Scammer preys on artist’s trust and creativity

The 85-year-old victim, residing in Clinton Hill, was deceived by an online fraudster posing as an art dealer on the professional networking platform LinkedIn. The scammer convinced the artist to sell his artwork as non-fungible tokens (NFTs) on a bogus site masquerading as a legitimate NFT marketplace, promising him $300,000 in bitcoin proceeds.

Financial devastation and emotional toll

The victim, overwhelmed by the allure of significant returns, ended up liquidating his IRA account, maxing out his credit cards, and even taking out a loan in his desperation to access the promised funds. Brooklyn District Attorney Eric Gonzalez emphasized the emotional and financial devastation caused by the scam.

Nigerian connections and widespread network

Investigations led to the discovery that the stolen cryptocurrency was funneled into Nigerian accounts and swiftly converted to local currency. Despite being unable to recover the stolen funds, authorities unveiled a network of 40 scam NFT art marketplace websites targeting artists, with many mimicking legitimate platforms.

Countermeasures against NFT scams

The seized domain names now direct visitors to a warning page about NFT scams, offering guidance to prevent falling victim to similar schemes. Tips include verifying the authenticity of art dealers, utilizing trusted NFT marketplaces, safeguarding cryptocurrency wallet seed phrases, and exercising caution regarding upfront fees.