New York is witnessing a significant rise in the value of Bitcoin, yet it also brings with it a concerning issue - cryptocurrency scams. One victim, Doug Newton, a 86-year-old lifelong artist specializing in still life paintings sold online, shared his harrowing ordeal with CBS News New York.

Beware! Brooklyn's Crypto Scams on the Rise

Bitcoin's Surge and the Scam Tactic

As the value of Bitcoin continues to soar, scammers are taking advantage of the situation. Doug Newton received a message on LinkedIn from someone named Ernestine Vigil, claiming to be from Opensea Private Mint. At first, he thought it was easy money, but soon realized it was a downhill spiral. The messenger told him his work would be converted into an NFT, a digital asset that can be in the form of art. She said it sold for $49,000, but then demanded he pay for internet fees and taxes. Newton started sending her money, not realizing he was being scammed. This tactic is very common, as stated by Alona Katz, the unit chief for the Brooklyn DA's Virtual Currency Unit. Seven months and about $120,000 later, Newton realized the truth. The money ended up being cashed out in Nigeria. "You start with just a, 'You know, it's just a $5,000 tax and we need this fee,' and it's just a long term, trying to extract as much from the victim as possible," said Katz.

Brooklyn's Crypto Complaint Rate

Brooklyn fields a staggering 60% of crypto-related complaints, according to the DA. Eric Gonzalez started the Virtual Currency Unit last year, and his office reports that 60% of cryto-related complaints came out of Brooklyn in 2023. They estimate that New Yorkers will lose about $40 million in cryptocurrency scams this year alone. These are very targeted attacks, aiming to deceive unsuspecting victims.

Protecting Yourself from Crypto Scams

If you are approached about crypto investments by what may seem like a reputable site, it is crucial to do your own research. Go online and see if you can find the real one. Reach out to the person and ask if they are an employee. It is also advisable to tell a friend and get a second opinion. There is no shame in seeking help or reporting it to authorities. As Gonzalez said, "We are watching, we are behind the scenes and, if we catch you, we will prosecute you to the fullest extent of the law."