UK Tax Department Seized NFTs For the First Time
Reading Time: 2 minutes

Her Majesty’s Revenue and Customs (HMRC), UK tax authorities seized NFTs for the first time. According to the BBC, the seizure was part of a £1.4 million (roughly $1.9 million) fraud case. It involved three individuals who have been arrested. Three NFT artworks which are yet to be valued along with £5,000 worth of crypto assets (around $6,762) were seized by the authority. 

With the explosive rise in cryptocurrencies, high-profile seizures by authorities have become common. The US Department of Justice this month seized around $3.6 billion worth of cryptocurrency linked to the 2016 Bitfinex hack. 

As cryptocurrencies have exploded in price, high-profile seizures by authorities have become increasingly common. Just this month the USA’s Department of Justice seized $3.6 billion worth of cryptocurrency linked to the 2016 Bitfinex hack. This is one of the first high-profile NFTs seizure where the digital assets are used to serve as proof of ownership of media like images or songs.

Nick Sharp, HMRC’s deputy director of economic crime, said the authority “constantly adapt[s] to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets. It serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC.”

The alleged fraud involved 250 fake companies with the three suspects using everything from fake addresses, prepaid phones, VPNs, and stolen identities to hide their activities from HMRC. According to Sky News, HMRC has not taken control of the NFTs, though it will be using a court order to prevent them from being sold.

According to Bloomberg, there has been an increase in the number of fraud related to crypto-assets noted by the IRS special agents. Individual NFTs are being sold for millions as part of an industry that values around $16 billion, looks inevitable for the authorities to start getting more involved. 

Related Articles:
Secret CIA ‘Bulk Collection’ Program Which Affects Americans
Sony Walkman NW-WM1ZM2 Stunning Gold Plated Hi Fi Audio Player
LEGO Technic McLaren Formula 1 Race Car #42141 set