British tax authorities confiscate NFTs for the first time

The UK tax authorities confiscated three non-fungible tokens and $6,700 worth of cryptocurrencies, and also detained three people as part of a money laundering case.

The detainees are suspected of organizing an illegal tax evasion scheme for $1.9 million, as well as trying to launder proceeds of crime through digital assets. The investigation concerned 250 one-day firms.

Nick Sharp, Deputy Director of Her Majesty’s Revenue and Customs (HMRC), did not disclose the dollar value of the confiscated NFTs. He stressed that the withdrawal will serve as a warning to attackers who think they can use cryptocurrencies to hide money.

“We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets,” Sharp added.

From January to October 2021, there were over 7,118 allegations of financial fraud involving digital assets in the UK, according to Bloomberg. During this period, the victims lost approximately $200 million. This is 30% more than during the whole 2020. More than half of the deceived people were between the ages of 18 and 45.

Detective Chief Inspector Craig Mullish described the significant increase in crypto fraud over recent years as “unsurprising,” given the increased time that people are spending online.

“Reports of cryptocurrency fraud have increased significantly over the past few years,” temporary detective chief inspector, Craig Mullish, is quoted as saying. “Being online more means criminals have a greater opportunity to approach unsuspecting victims with fraudulent investment opportunities.”


Share this article:

Leave a Reply

Your email address will not be published.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.