UK tax authority suspects 250 alleged fraudulent companies are involved NFT tax fraud confiscated three non-changeable tokens (NFTs) as part of its investigation. HM Revenue and Customs (HMRC) said three people have been arrested on suspicion of a £1.4m fraud attempt, and UK law enforcement has seized the NFT for the first time in history.
NFTs are assets that can be traded in the digital world but have no tangible form of their own. The digital tokens that emerged in 2014 can be thought of as certificates of ownership for virtual or physical assets. NFTs are unique. digital signature so that the traditional currency or bitcoin They can be bought and sold using cryptocurrencies such as
The measure that angers users from the platform, who is tired of fake NFT sales!
Cent, one of the famous NFT platforms, has stopped all NFT trading on the platform in order to prevent fake NFT sales.
NFT tax scam: £1.4m hijacked
In the tech market where Bitcoin is seen as a digital answer to currencies, NFTs are touted as the digital answer to collectibles. But many dubious investors and companies fear they are a bubble waiting to burst.
The absence of regulations and other protections regarding NFTs leads to significant problems with fraud, including self-sells and counterfeit or plagiarized tokens to increase prices.
HMRC, £1.4m scam alleged that the suspects in his case used “advanced methods” to attempt to conceal their identities and engage in legitimate business activities, including forged and stolen identities, false addresses, prepaid unregistered cell phones, Virtual Private Networks (VPNs), fake invoices and counterfeiting.
Nick Sharp, deputy director of economic crimes, said the takeover of an NFT serves as a warning to anyone who thinks they could use crypto assets to hide money: “We are constantly adapting to new technology to keep up with how criminals and smugglers look to hide their assets.”
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