Brooklyn DA Shuts Down 40 Fake NFT Marketplaces

An NFT scam investigation led Brooklyn’s District Attorney’s Office to uncover and shut down a network of 40 fake NFT marketplace websites, following a heartbreaking case in which an 85-year-old artist lost $135,000.

The artist was targeted by a scammer posing as an art dealer on LinkedIn. The scammer convinced the victim to mint his artwork on a fraudulent NFT site designed to resemble the reputable marketplace OpenSea.

The Scam: $135K Lost in a Fake NFT Scheme

After minting his artwork on the fake site, the artist was told he had earned $300,000 in profits. However, to access the funds, the scammer demanded a $135,000 “fee.”

The victim liquidated his retirement account, took loans, and used credit cards to pay the amount, only to realize the promised payout would never come.

“He was emotionally and financially devastated,” the Brooklyn District Attorney’s Office said in a statement.

Investigation Uncovers Fraud Network

Brooklyn DA Eric Gonzalez said the investigation revealed a broader scheme targeting artists through LinkedIn and similar phishing methods. The tactics used in the case led authorities to 40 fake NFT marketplace sites, now shut down.

Key findings include:

• Funds were traced to accounts at a Nigerian crypto exchange, where they were quickly converted into local currency, making recovery impossible.
• The fake OpenSea lookalike site appeared to be controlled and funded from Nigeria.
• Some fraudulent sites requested crypto wallet seed phrases, enabling scammers to drain victims’ wallets completely.

“It is my hope that by shutting these domains and raising awareness, we will prevent others from falling victim,” Gonzalez said.

Two other artists—one from California and another from Georgia—were similarly tricked, highlighting the scheme’s wide reach.

Protecting Artists from NFT Scams

The Brooklyn DA’s Office offered essential tips for NFT artists to stay protected:

1. Use only established NFT marketplaces like OpenSea, Rarible, or Foundation.
2. Avoid phishing sites that mimic legitimate platforms.
3. Never share your crypto wallet seed phrase—this grants full access to your wallet.
4. Stay alert for suspicious offers that sound too good to be true.
5. Do your own research and consult trusted artists or communities before engaging in NFT transactions.

“If it seems too good to be true, it likely is,” the DA’s Office emphasized.

The takedown of 40 fake NFT marketplace sites highlights the growing security challenges in the digital art space. While NFT platforms offer unique opportunities for creators, scams targeting artists are on the rise.

By staying vigilant and using trusted platforms, artists can protect themselves against phishing schemes and fraudulent NFT operations.