new york — as Bitcoin value increasesthe Brooklyn District Attorney's Office warns New Yorkers about cryptocurrency scams. One of the victims spoke exclusively to CBS News New York about his experience.
Doug Newton just turned 86 years old. This lifelong artist specializes in still life paintings that he sells online.
Last September, he received a message on LinkedIn from someone named Ernestine Vigil offering to sell his work for cryptocurrency.
“At first I thought, great, this is easy money. Then everything went downhill,” Newton said.
The messenger said she worked at the Open Sea Private Mint. Newton was told that his work would be converted into an NFT, or non-fungible token, a digital asset that can take the form of art.
“She said it sold for $49,000,” he explained. “But when I asked to take the money, she said, 'Oh, it was resold for even more, but the internet charges and taxes have to be paid to Private Mint.' I started sending money to her.”
Brooklyn handles 60% of crypto-related complaints, DA says
Alona Katz, head of the Brooklyn Attorney's Office's cryptocurrency division, said this type of tactic is “very common.”
After receiving about $120,000 in seven months, Newton realized she had been scammed. Eventually, the money was cashed in Nigeria.
“It starts off with, ‘It’s only $5,000 in taxes and we need this fee,’ and it’s a long-term thing where they try to squeeze as much as possible out of the victim,” Katz said.
Brooklyn District Attorney Eric Gonzalez We launched a virtual currency unit last year.and his office reports that 60% of crypto-related complaints will come from Brooklyn in 2023.
“We estimate that New Yorkers will lose approximately $40 million to crypto fraud this year in 2024 alone,” Gonzalez said. “Those are very targeted attacks.”
If you're approached about investing in cryptocurrencies by what appears to be a reputable site, do your own research, says Katz.
“See if you can find the real thing online, then contact the person and ask, 'Is this person an employee?'” And I always tell people, 'Tell a friend.' ” she said.
She says there's no shame in getting a second opinion from a friend or reporting it to authorities.
“We're watching, we're working behind the scenes, and if we catch you, we'll prosecute you to the fullest extent of the law,” Gonzalez said.
