Bengaluru Digital Artist Scammed in NFT and Cryptocurrency Fraud
A 71-year-old digital artist in East Bengaluru fell victim to a sophisticated scam involving a dubious website, non-fungible tokens (NFTs), and cryptocurrency payments, resulting in a loss of approximately Rs 1.58 lakh. Shivaprasad R, a practicing chartered accountant turned digital artist, was approached by a person claiming to be an NFT art dealer on Facebook in October 2023. The dealer introduced Shivaprasad to a website called www.nfttradeplace.com, which purported to be a marketplace for NFTs.
The scam unfolded with negotiations held through social media and email, culminating in a sale agreement for 42 Ethereum (ETH) worth around Rs 1.09 crore. Shivaprasad made the first payment of 0.115 ETH as a transaction fee, but when he attempted to withdraw the funds from his crypto wallet, he was asked to pay a “delay fee” that was never discussed during the initial negotiations.
Despite making multiple payments totaling Rs 1.58 lakh as instructed by the fraudsters, Shivaprasad was unable to access the promised cryptocurrency. Frustrated and realizing he had been scammed, he sought help from the cyber police who opened a case under relevant sections of the Information Technology Act and the Indian Penal Code.
The case serves as a cautionary tale about the risks associated with online transactions involving cryptocurrencies and NFTs. The cyber police are currently working to trace the cryptocurrency trails and gather more information about the scammers involved in the elaborate scheme.
As the investigation continues, it highlights the importance of vigilance and due diligence when engaging in online transactions, especially in emerging markets like NFTs and cryptocurrencies. The story serves as a reminder to stay informed and cautious while navigating the digital landscape to avoid falling prey to similar scams.
