Brooklyn’s District Attorney’s Office has taken action against non-fungible token (NFT) fraud, shutting down 40 fake NFT marketplace sites.
This decisive action followed an incident in which an elderly artist was scammed out of $135,000.
The 85-year-old victim was deceived by a LinkedIn contact posing as an art dealer, who encouraged him to mint the artwork on a counterfeit NFT platform designed to mimic the OpenSea marketplace.
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The scammer demanded a $135,000 “fee” to release the funds. To meet this demand, the artist depleted his retirement savings, maxed out credit cards, and even took out a loan.
As soon as the artist realized the promised $300,000 would never materialize, he then reported the incident to the Brooklyn District Attorney’s Office.
Brooklyn District Attorney Eric Gonzalez revealed the artist used a network of fake NFT websites. These scams specifically targeted creators, manipulating their trust and exploiting their financial vulnerability.
The Brooklyn DA’s Office emphasized the importance of using reputable NFT platforms and remaining vigilant against phishing schemes disguised as legitimate marketplaces.
The office reiterated a warning:
If it seems too good to be true, it likely is. Do your own research and seek opinions from fellow artists.
Gonzalez hoped that shutting down these fraudulent domains and increasing public awareness would deter future scams.
Just recently, another major incident shook the crypto community, involving a massive Solana theft tied to over 8,000 wallets. How did the hackers pull off this daring heist? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
