‘Huge mess of theft and fraud:’ artists sound alarm as NFT crime proliferates

theguardian.com:

When Lois van Baarle, a Dutch artist, scoured the biggest NFT marketplace for her name late last year, she found more than 100 pieces of her art for sale. None of them had been put up by her.

Van Baarle is a popular digital artist, with millions of followers on social media. She’s one of a growing number of artists who have had online images of their art stolen, minted as unique digital assets on a blockchain, and offered up to trade in cryptocurrency on the NFT platform OpenSea.

The rise in such thefts comes as the market for non-fungible tokens, or NFTs, exploded last year, growing to an estimated $22bn, attracting Sotheby’s and Christie’s, and driving multimillion-dollar auctions for these new certificates of ownership of digital assets.

OpenSea has grown at a dizzying pace, and is now valued at $13bn. But amid its spectacular rise, the company is doing far too little to prevent thetrade infraudulent NFTs, some artists charge, and is placing much of the burden of policing art fraud on the artists themselves.

OpenSea said in a statement: “It is against our policy to sell NFTs using plagiarized content,” adding that it regularly delisted and banned accounts that did so. The company said it was working to build new image recognition and other tools that would quickly recognize stolen content and protect creators, and that it planned to launch some of them in the first half of this year.

In theory, blockchain technology was supposed to make it easier for digital artists to sell unique tokens of ownership, offering buyers a permanent record of ownership linked to the work.

For some artists, the technology opened up a new way to earn money : Kenny Schachter, a New York-based video artist and art writer, embraced NFTs early and