May 21, 2022

The Catholic Transcript

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UK arrests 3 NFTs for $ 1.8 million fraud

UK arrests 3 NFTs for $ 1.8 million fraud

The UK is at the crossroads of NFTs. Image: Reproduction

This is the first time the government has taken such action; Various efforts are being made to combat other scams.

Against crime

As stated in it BBCHer Majesty’s Revenue and Customs (HMRC), the authority responsible for the British tax mechanism, has seized 3 NFTs allegedly involved in fraud involving $ 1.8 million in digital assets.

Nick Sharp, chief economic crime officer, told the portal that the government’s move was “an example to anyone who wants to use crypto assets to hide money from HMRC”.

This is the first time the UK government has seized a fungus-free token. To this end, HMRC sought a legal order for confiscation.

Procedure

According to the authority, they use “sophisticated methods” to deceive users and controllers. Prepaid numbers, Netmask (VPN) and fake invoice are some examples.

All of these methods are used to evade VAT, which is the tax levied on the activation of goods and services in the UK.

According to Chain analysisNFTs are often used to commit money laundering:

“Like any new technology, NFTs offer the potential for misuse.

This is not the UK’s first move against cryptocurrencies: The The government is focused on combating false advertising Includes decentralized assets. About 2.3 million Britons own some form of digital assets.