HomeUK tax authority seizes NFTs in fraud case

UK tax authority seizes NFTs in fraud case

Benson Toti

The seizure is the first involving NFTs in the UK, the HMRC said.

UK’s tax authority, the HM Revenue and Customs (HMRC), has announced the seizure of three non-fungible tokens (NFTs) linked tax evasion fraud.

According to the HMRC, the case is connected to VAT fraud and is the first time UK law enforcement had arrested people and seized NFTs.

Police are reported to have arrested three individuals after investigations showed a tax evasion ring involving £1.4 million (roughly $1.8 million) in value-added tax. The suspects, the reported added, used fake identities and committed the fraud via 250 fake companies.

The seizure is “a warning to anyone who thinks they can use crypto assets to hide money from HMRC," said Nick Sharp, the deputy director of economic crime.

The news comes as authorities increase their battle against the potential use of crypto assets in illegal activities, with recent probes resulting in the seizure of millions of pounds worth of crypto allegedly linked to tax evasion and money laundering.

Sharp added:

"We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets."

The tax agency also seized 5000 pounds worth of other digital assets.

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