fcr€21 million fraud about non-existing digital NFT art
[summary of a paywalled, German-language article]:
German prosecutors have filed fraud charges against five individuals who allegedly used the promise of digital art and NFTs to run a €21 million Ponzi scheme. The group operated a cult-like investment club called "Der Schwarm" (The Swarm). Capitalizing on the hype surrounding digital NFT art, they sold purported fractions of digital artworks, which they labeled as "Pixels" or "NFSTs." During online presentations to over a thousand participants, the leader of the group Gerd K. ("Ger-D") claimed that he would sell a single image from the collective for ten billion dollars, and that he planned to open galleries in New York, Tokyo, and the Philippines.
The scheme relied on aggressive word-of-mouth recruitment and private Telegram groups. Over 16,000 people were lured into paying monthly fees to a Bulgarian shell company. Following police raids, authorities discovered that while the followers were sold on the dream of "digital art", the perpetrators were hoarding traditional, tangible wealth, seizing nearly 100 pounds of gold and silver, luxury watches, and a Maserati.
Without paywall:
https://archive.ph/bEKCD#selection-633.0-1689.1
Mutmaßliches deutsches Schneeballsystem: Ihren Anhängern verkauften sie »digitale Kunst«. Sie selbst horteten Gold und Silber
Ein Finanzschwurbler soll Tausende Anleger in den obskuren Investmentclub »Der Schwarm« gelockt haben. Von den mutmaßlichen Opfern bekam er Millionen von Euro. Manche von ihnen zogen auch Freunde mit hinein.
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