UK Tax authority has seized three non-fungible tokens (NFTs) worth $1.896 million as part of its suspected tax evasion fraud involving 250 alleged fake companies. This is the first time a department of government made such a move in the NFT space.

In a first of a kind, the United Kingdom’s tax authority, Her Majesty’s Revenue and Customs (HMRC) have seized three NFTs, according to a report from <a href="https://www.bbc.com/news/business-60369879" target="_blank" rel="nofollow noopener">BBC</a>. The agency claims that the suspects used sophisticated methods to mask their identities, including stolen identities, VPNs, false invoices, and addresses, among other things.

The NFTs were seized alongside crypto-assets worth about £5,000. The investigation is still ongoing and could spark further inquiry into the NFT market.

Commenting on the development, deputy director of economic crime Nick Sharp said:
<blockquote><em>“[this] serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC. We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”</em></blockquote>
<h2><strong>NFTs Catches Regulators' Eyes</strong></h2>
NFTs exploded to peak popularity in 2021 and went on to become a common regulatory topic for lawmakers. Earlier this month, the <a href="https://www.cryptoknowmics.com/news/white-house-wants-crypto-rules-as-a-matter-of-national-security/">US Treasury Department</a> released a report describing how the NFT art market fits into money laundering schemes. However, the Thai SEC, so far, is the only regulator to have banned NFTs alongside memecoins.

However, blockchain analysis firm Chainalysis recently <a href="https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering/" target="_blank" rel="nofollow noopener">reported</a> that the amount of illicit funds laundered through NFTs remains relatively small compared to total crypto-based financial crime.

UK Tax Authority Seize NFTs in $1.8M Fraud Case

UK Tax authority has seized three NFTs worth $1.896 million as part of its suspected tax evasion fraud involving 250 alleged fake companies.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

UK Tax Authority Seize NFTs in $1.8M Fraud Case

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