By Mark Hunter

18 hours agoTue Dec 10 2024 11:49:36

Reading Time: 2 minutes

  • Brooklyn District Attorney Eric Gonzalez has shut down 40 NFT scam websites
  • Some of the websites were impersonating popular NFT marketplaces like OpenSea
  • Scammers targeted artists, with one losing $135,000

Brooklyn District Attorney Eric Gonzalez has stopped scammers in their tracks by shutting down 40 NFT scam websites. The scammers used the sites to target artists, and they had already siphoned the life savings of one victim. Some sites mimicked popular NFT exchanges like OpenSea, with the malicious actors scouting for victims on social media platforms, a move that’s likely to nab more victims, especially those not well-versed in the NFT world.

The Scammer Posed as an Art Dealer

The DA gave the orders to have the websites pulled down when a Brooklyn resident involved law enforcement agencies after he lost his life savings to the scammers. The 85-year-old artist lost roughly $135,000 after being tricked to convert his traditional art into NFTs and list it on one of the scam websites.

According to the DA, the scammer posed as an art dealer representing “OpenSea/Private Mint” on LinkedIn. He took the opportunity and was later informed that his NFT art had attracted $300,000 in sales. 

To receive the amount, however, he needed to pay a $135,000 fee. Investigations into the artist’s funds “identified 40 scam NFT art marketplace sites that appeared like legitimate marketplaces.”

Gonzalez said that shutting down the websites prevents “future victimizations,” adding that crypto scammers prey on vulnerable victims and request fees for the victims to access “purported earnings.”

Scammers Don’t Want Victims’ Wallet Security Details

According to the DA, crypto scams can take different shapes but they have a similar base structure. Although cryptocurrency scams aren’t new, the tactic used in this scenario isn’t common.

Scammers usually clone popular crypto-focused websites and attach wallet drainers consequently siphoning funds from a victim’s wallet. 

The tactic aligns with a recent confession from a malicious actor who said that he isn’t interested in getting a victim’s crypto wallet login details but wants to trick a victim into voluntarily sending them their crypto balances.

With scammers continuously inventing new tactics, inexperienced crypto and non-crypto users are likely to form the majority of the victims.