In a crackdown against suspected activities to hide money, HM Revenue and Customs has reportedly seized three NFTs (non-fungible tokens). The assets were also confiscated by law enforcement, who also arrested the three suspects.
The First NFT Seizure
According to Reuters, British tax authorities were investigating a $1.9million financial scheme. This operation was part of a probe into a possible Value Added Tax fraud involving 250 alleged false firms.
The HMRC took three NFTs as well as approximately $6,700 worth cryptocurrencies. This was the first time that non-fungible tokens were confiscated by HMRC.
Nick Sharp, HMRC’s Deputy Director of Economic Crime, did not disclose the USD value of digital collectibles. He stated that the seizure would serve as a warning to bad actors thinking they could hide their money using cryptocurrencies.
Sharp said, “We adapt to new technology constantly to ensure that we keep up with how criminals or evaders seek to conceal their assets,” Sharp continued.
One of the most popular trends in the digital asset market is the non-fungible token. These cryptographic tokens can be used to represent real-world assets like a car or song. As they are blockchain-based, you can also prove ownership and verify their authenticity.
Many famous actors, musicians, and athletes have released collections over the last few months. Eminem, John Legend and Quentin Tarantino just a few examples.
Non-fungible tokens, on the other hand, have their adversaries, too. Kanye West, an American rapper, said that the NFT universe isn’t appealing. Joe Rogan called them a “cryptocurrency hustle.”
Cryptofrauds in the UK
Digital assets fraud is not uncommon in the United Kingdom. Recent coverage revealed that more than 7,000 cases of these schemes were reported in the country between January 2021 and October 2021. The victims received approximately $200 million in compensation, which is 30% more than the total of 2020.
According to authorities, more than half of those who were conned were between the ages of 18 and 45. It is not surprising that young people are the most active group in dealing with bitcoin and other coins.
The primary digital asset is the focus of a large portion of the frauds. An anonymous UK resident was conned by a woman he had sex with via a dating app. He parted with $200,000 a few weeks ago. He was encouraged to invest in Bitcoins on a dubious app that promised him riches.
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