BROOKLYN, N.Y. — A cryptocurrency scam targeting artists nationwide has been dismantled by the Brooklyn District Attorney’s Office after an 85-year-old painter lost his life savings of $135,000 to a bogus NFT art marketplace, officials said.
The victim, a Clinton Hill resident, was lured into the scheme by an online scammer posing as an art dealer on LinkedIn. The scammer convinced him to sell his artwork as non-fungible tokens (NFTs) on a fraudulent site mimicking a legitimate NFT marketplace. After being promised $300,000 in bitcoin proceeds, the victim was told to pay escalating fees to access the funds. Overwhelmed by the promise of returns, he liquidated his IRA account, used credit cards, and took out a loan to pay the scammers.
“This scam exploited an artist’s creativity and trust, leaving him emotionally and financially devastated,” said Brooklyn District Attorney Eric Gonzalez, whose Virtual Currency Unit led the investigation.
Investigators traced the stolen cryptocurrency to accounts connected to Nigeria, finding that the funds were quickly cashed out for local currency. While the stolen money could not be recovered, the probe uncovered a network of 40 scam NFT art marketplace websites targeting artists, many of which were spoofing legitimate platforms.
The seized domains now redirect to a page with warnings about NFT scams, providing advice to avoid falling victim to similar schemes. Among the tips: verify art dealers’ authenticity, use trusted NFT marketplaces, never share cryptocurrency wallet seed phrases, and be wary of upfront fees.