UK Tax Regulator Seizes NFTs for First Time as Part of Fraud Investigation
Three people have been arrested for allegedly attempting to defraud HMRC of $1.8 million.
Feb 14, 2022 at 4:14 p.m. UTCUpdated May 11, 2023 at 7:12 p.m. UTC
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Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax and law enforcement agency, has seized non-fungible tokens (NFTs) and made three arrests as part of a fraud investigation.
- Three NFTs have been seized during an investigation into a suspected organized, value-added tax repayment fraud involving 250 alleged fake companies, the HMRC said Monday.
- Three people have been arrested for allegedly attempting to defraud HMRC of $1.8 million using “sophisticated methods.”
- The suspects hid their identities using stolen identities, false addresses, prepaid unregistered mobile phones, Virtual Private Networks (VPNs) and false invoices, according to the HMRC.
- HMRC said it is the first law enforcement agency to seize NFTs and warned the public that the arrests are an example and warning to anyone who thinks they can use crypto assets to hide money.
- “We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets,” said Nick Sharp, HMRC’s deputy director economic crime, in a press release.
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