The British Tax Administration has made the first NFT confiscation in the case of a fraud of 1.4 million pounds

The British Tax Administration has made the first NFT confiscation in the case of a fraud of 1.4 million pounds

Following suspicions of alleged VAT fraud involving at least 250 fraudulent companies, the UK Tax Administration, HMRC (HMRC) seized three non-replaceable tokens (NFTs) in their ongoing investigations, according to BBC reports. The agency also confirms that it has arrested at least three suspects in connection with the attempted fraud of 1.4 million pounds.

The UK Tax Authority became the first UK legal agency to seize digital assets

According to HMRC, it became the first police force in the United Kingdom to seize NFT.

The agency also confirms that the suspects allegedly used “sophisticated methods” to try to hide their identities. For example, they used fake and stolen identities, fake addresses, pre-paid unregistered mobile phones, virtual private networks (VPNs), among other things to engage in real business activities.

Meanwhile, Nick Sharp – deputy director for economic crime, hopes it will be NFT The seizure threshold serves as a deterrent to anyone considering using cryptocurrencies to hide money from HMRC. He said:

“We are constantly adapting to new technology to ensure that we keep pace with the way criminals and evaders seek to hide their property.”

In addition, HMRC says it has also secured a court order to detain the seized crypto assets worth about £ 5,000 and three digital works of art that have not yet been assessed, while the investigation continues.

Possible legal dangers with NFT?

Although, NFTs are digital assets that can be bought and sold, they do not have their tangible form. More appropriately, NFT can be described as a certificate of ownership for a virtual or physical asset. And due to the fact that NFTs have a unique digital signature, they can be bought and sold using fiat currency or cryptocurrency like Bitcoin.

But while Bitcoin has been hailed as a digital alternative to currency, NFTs have been touted as an alternative to collectibles. And for that reason, several skeptics still believe that NFT is a time bomb waiting to explode.



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