A 71-year-old digital artist from India, whose identity remains concealed for privacy reasons, recently became trapped in a sophisticated NFT scam.

The bogus scam sheds light on the growing prevalence of cryptocurrency fraud in the country. The victim is a seasoned chartered accountant (CA) and a respected professional artist who showcases his works in numerous local exhibitions and social media platforms like Instagram and Facebook.

In October 2023, Shivaprasad R (real name concealed) met some individuals online posing as NFT art dealers, initiating a series of transactions on nfttradeplace.com. The scam artists promised to purchase his artwork for 42 ETH (equivalent to approximately INR 1.09 crore).

Excited by the prospects of these huge earnings, Shivaprasad listed several of his prized artworks on the platform, reaching agreements for 10 ETH for three pieces and 12 ETH for another. However, the events took a twist on February 1, 2024, when the buyers asked the victim to pay 0.115 ETH as “gas fees” to facilitate the transaction. Incidents like this are why the US FBI released vital insights into identifying NFT and crypto scams last year.

Bogus NFT Platform Fees

Unknown to Shivaprasad, this initial NFT payment began his financial ordeal. Attempts to withdraw his earnings were met with obscure demands for additional fees by the scammers. Desperate to reclaim his funds, the artist succumbed to the scammers’ demands, making multiple payments totaling INR 1.58 lakhs.

He identified the names of the payment recipients as Mohammed Ekramul Haque and Mohammad Farooq. Despite Shivaprasad’s compliance with their demands, he could still not make the promised withdrawals, prompting him to suspect foul play.

Realizing the extent of the deception, Shivaprasad lodged formal complaints with the cyber police under relevant sections of the Information Technology (IT) Act and the Indian Penal Code (IPC). However, the complexities of tracking cryptocurrency transactions have made tracking and arresting the culprits almost impossible.

Identifying Perpetrators

Despite authorities’ relentless efforts to follow leads, which include probing bank and domain information linked to fraudulent schemes, the perpetrators’ real identities are still unknown.

Shivaprasad’s situation highlights a troubling truth — cryptocurrency scams in India continue to increase unabated. Recent incidents, such as an $800 million Ponzi scheme involving a Bollywood figure and a fraudulent job recruitment scam draining victims’ crypto wallets, point to the continuous proliferation of crypto scams in the country. It is no wonder India’s Enforcement Directorate recently exposed almost 300 entities involved in various scam incidents in India.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.