According to the Department of Justice (DoJ), the scammer successfully obtained users’ crypto wallet seed phrases by redirecting them to a fraudulent OpenSea website.
US Prosecutors filed charges against a Moroccan man on Monday, July 10, for stealing two Bored Ape NFTs and other digital assets through a counterfeit OpenSea marketplace. The stolen items, including NFTs and cryptocurrencies, amounted to a total value of $450,000.
Soufiane Oulahyane, a 25-year-old individual, created a counterfeit OpenSea NFT website and deceived victims into revealing their seed phrases, granting access to their crypto wallets. By doing so, Oulahyane gained unauthorized entry to accounts on the genuine OpenSea marketplace, as stated by the Department of Justice.
Manhattan US Attorney Damian Williams described this act as “spoofing,” an age-old tactic employed by criminals. Williams noted that Oulahyane adapted this traditional technique for the crypto space, which is a developing arena.
NFT Market Faces Turmoil as Frauds Rise
The NFT market is experiencing a challenging period, with leading projects like Bored Ape Yacht Club (BAYC) witnessing multi-month lows in their floor prices. Consequently, there has been a simultaneous increase in fraud activities within the NFT space.
Prosecutors in New York have filed charges against Oulahyane for cryptocurrency theft from an undisclosed victim. Oulahyane further sold 39 of the victim’s NFTs on OpenSea, including one depicting a cartoon ape wearing a sailor cap and smoking a cigar, as confirmed by the Department of Justice.
Fake OpenSea Site Used to Steal Seed Phrases
According to the government investigation, Oulahyane utilized sponsored links on an undisclosed search engine. When users clicked these links, they were redirected to a counterfeit login page resembling OpenSea. Once users entered their seed phrases on the fake website, the information was transferred to Oulahyane.
Prosecutors revealed that the victim spent approximately $18,700 to purchase the ape NFT, using 9.88 Ether, and $3,400 for the dog NFT, using 1.789 Ether.
Oulahyane is facing charges of wire fraud, unauthorized access device usage, aggravated identity theft, and the use of an access device to steal at least $1,000. In the event of a fraud conviction, he could potentially receive a maximum prison sentence of 20 years.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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