NFT Fraud: UK Tax Authority Makes First Seizure In £1.4m VAT Scam

NFT Fraud..The UK tax authority has seized three Non-Fungible Tokens as part of an investigation into suspected VAT fraud involving 250 alleged bogus companies.

HM Revenue and Customs (HMRC), the United Kingdom’s chief tax authority, has seized three nonfungible tokens (NFTs) associated with a suspected tax evasion fraud.

iexclusive News Nigeria reports that the tax watchdog claimed to be the first law enforcement agency in the United Kingdom to seize NFT.

What You Need To Know

The seizure of the NFT was accompanied by the arrest of three people suspected of evading taxes through various sophisticated means, according to the BBC.

The arrested suspects in the case reportedly used fake identities and created 250 fake ‘shell’ companies to evade £1.4 million ($1.8 million) in value-added taxes (VAT).

HMRC obtained a court order to seize $6,765 (£5,000) in digital assets as well as three NFTs from the suspects.

The recent seizures of NFTs and digital assets in the tax fraud case, according to HMRC deputy director Nick Sharp, serve as a warning to those looking to hide money from the tax authorities.

He stated: “We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”

While the tax authority’s warning to the general public is routine.

It is important to note that the confiscated digital assets and NFTs were seized as assets, as is common in tax evasion cases for authorities to compensate for losses after court proceedings.

These seized digital assets and collectibles were not used as a means of committing crimes on their own.

NFTs have grown in popularity, reaching a peak in 2021, and have become a trend among brands and the general public.

Legislators have also become a popular regulatory topic as their popularity and use cases have grown.

These regulatory discussions are quite common in the traditional financial market.