An artist lost $135,000 in an NFT scam, and Brooklyn prosecutors dismantled 40 fake trading websites

2024-12-09 09:42:08
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ChainCatcher news, according to Cointelegraph, the Brooklyn District Attorney's office has shut down 40 NFT scam marketplace websites after an 85-year-old artist was scammed out of $135,000.

The Brooklyn District Attorney's office stated on December 6 that someone impersonating an art dealer contacted the victim on LinkedIn, convincing him to mint his artwork on a fake NFT marketplace similar to New York's OpenSea. He was later told he had earned a profit of $300,000—but to withdraw the money, he had to pay a "fee" of $135,000. He raised the funds by completely draining his retirement accounts, using credit card payments, and taking out loans.

The office also added that this counterfeit OpenSea website "appears to be controlled and funded by Nigerian sources," and some of the now-closed websites prompted visitors to enter their cryptocurrency wallet recovery phrases, "which would allow scammers to completely empty the contents of users' online wallets."

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