Nft, in the United Kingdom the first maxi seizure: fraud for 1.4 million pounds

Nft, in the United Kingdom the first maxi seizure: fraud for 1.4 million pounds

The operation carried out by Her Majesty’s Revenue and Customs as part of a VAT investigation. Three arrests, involving 250 alleged bogus companies

14 Feb 2022
NFT

The British tax authority has seized three NFTs: this is the first operation of this type.
Her Majesty’s Revenue and Customs (HMRC) officials explained that they seized the NFT during an investigation into a suspected case of VAT fraud worth 1.4 million pounds (1.9 million dollars). The three suspects, arrested on charges of tax fraud, allegedly tried to claim more VAT than they owed, using a mix of stolen identities, unregistered phones and fake invoices to hide their identities. The scheme put in place involved 250 alleged fake companies.
“This is the first seizure of a non-fungible token and must serve as a warning to anyone who thinks they can use crypto assets to hide money from HMRC – underlined Nick Sharp, Deputy Director of Economic Crime at HMRC – We constantly adapt to new technologies to keep up with the way criminals and evaders try to hide their assets ”.
Demand for NFT has skyrocketed lately, with sales of such tokens exceeding $ 40 billion in 2021. However, the market is prone to theft and scams, and authorities are concerned that much of the trading activity in NFTs can be fueled by market manipulation tactics, starting with wash-trading.