An investigation by the Brooklyn District Attorney’s Virtual Currency Unit has led to the dismantling of 40 fraudulent NFT marketplace websites. The operation was uncovered after an 85-year-old artist from Brooklyn was conned out of $135,000 by a scammer posing as an art dealer.

The scam began when the victim was contacted on LinkedIn by someone claiming to be an art dealer. The fraudster convinced the artist to mint his work on a fake NFT marketplace designed to mimic the legitimate OpenSea platform. After claiming the artist had made $300,000 in profits, the scammer demanded a $135,000 “fee” to release the funds. The victim, desperate to access the money, liquidated his retirement savings, maxed out credit cards, and took out a loan, only to discover he had been conned.

Network of Fraudulent Sites Exposed

District Attorney Eric Gonzalez described the case as “emotionally and financially devastating” for the victim. The investigation uncovered a network of fraudulent websites targeting artists, with two additional victims identified in Georgia and California.

Source: Eric Gonzalez

The funds were traced to accounts linked to a Nigerian exchange, which primarily converted the stolen money into local currency, effectively preventing recovery. The fake OpenSea-style website and others in the network also reportedly prompted users to enter their crypto wallet seed phrases, allowing scammers to drain their wallets completely.

Warning to Artists
The Brooklyn DA’s Office urged artists to use only established NFT marketplaces and to remain vigilant against phishing attempts and fake websites. Gonzalez stated, “By shutting these domains and raising awareness, we hope to prevent others from falling victim to this scam.”

Artists were reminded never to share their crypto wallet seed phrases and to verify opportunities that seem “too good to be true.” The DA’s Office emphasized the importance of thorough research and consulting with fellow artists to avoid falling prey to such scams.