UK tax authorities announced on Monday that they had made their first seizure of non-fungible tokens (NFTs). It took place in a crackdown on suspected illicit activities to hide money.
Her Majesty’s Revenue & Customs seized three NFTs. It likewise happened after an investigation into an attempt to defraud the public coffers of 1.4 million pounds took place. ($1.9 million)
The suspects’ “sophisticated methods” to mask their identities included phony and stolen identities, fictitious addresses, pre-paid unregistered mobile phones, virtual private networks (VPNs), false invoices, and pretending to engage in authorized economic activities, according to HMRC. The authority also claimed it was the first law enforcement agency in the United Kingdom to seize an NFT.
Other crypto assets worth around 5,000 pounds were also a part of the seizure,
The authorities arrested three people as a result of the investigation for alleged V.A.T. payment fraud involving 250 phony companies.
The seizure of the NFTs in the UK had not yet been valued. But it acted as a warning to anyone who felt they could hide money using crypto assets, according to Nick Sharp. He is the deputy director of economic crime at HMRC.
“We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets,” he said in a statement.
NFTs are a type of crypto asset. It employs blockchain technology to track the ownership of digital data. The digital data could include anything from photographs, videos, to virtual things in online games.