After Brooklyn Artist Loses $135K In Scam, DA Blocks 40 Fake Websites

BROOKLYN, NY — Brooklyn District Attorney Eric Gonzalez has shut down 40 websites associated with a scam that drained an 85-year-old Clinton Hill artist's life savings, his office said on Friday.

According to Gonzalez, the artist was first contacted over LinkedIn by a scammer posing as an art dealer for a fake digital art marketplace called "OpenSea/Private Mint," which closely resembled a real New York City-based digital art marketplace called OpenSea.

The faux-art dealer wanted the man to sell his artwork on the fake site as NFTs, or non-fungible tokens, which are digital artworks that can be sold and traded in cryptocurrency, and the artist agreed to the deal, Gonzalez said.

Then, the scammer told the artist he had earned more than $300,000 from the site but that he would need to pay more than $135,000 to access those proceeds, Gonzalez said.

The fraud unraveled when the artist realized he was not getting the $300,000, leaving him emotionally and financially devastated, Gonzalez said.

“Cryptocurrency scams can take many forms but have similar characteristics, such as preying on vulnerable victims and requesting fees to redeem purported earnings," Gonzalez said.

"These were the tactics used in this case, leading our investigators to a network of fraudulent websites that specifically scammed artists. It is my hope that by shutting these domains and raising awareness about this scheme, we will prevent others from falling victim to this scam."

Unfortunately, Gonzalez said his office could not recover the victim's money because it had been transferred several times, converted to Nigerian currency, and cashed out, but he said they shut down the 40 websites connected to the scam, and are now raising awareness about how to recognize similar NFT-related scams.

Here are his tips:

• An artist may receive a direct message via an online account from someone purporting to be an art dealer or a representative of a legitimate NFT marketplace. It is important to verify the authenticity of any online art and NFT dealers before engaging.
• Only use established and trusted NFT marketplaces to sell your work. Be alert for phishing attempts via email or phishing websites that appear to resemble well-known NFT marketplaces. Phishing websites are often designed to steal credentials and fraudulently gain access to cryptocurrency assets. Legitimate NFT marketplaces do not ask for exorbitant fees upfront to sell NFTs.
• Protect your cryptocurrency wallet. No legitimate NFT marketplace will ask you to supply your seed phrase. Inputting your seed phrase on a website can lead to a scammer instantaneously draining the contents of your entire wallet.
• If it seems too good to be true, it likely is. Do your own research and seek opinions from fellow artists.

For questions and tips, email Miranda.Levingston@Patch.com.