CRIMINAL CRYPTO CAPITALI$M
British tax collector arrests 3, seizes NFTs in $1.9 million fraud case
Some pieces of NFT art are seen at Christie's in New York City on September 28, 2021. NFTs can be various digital assets that track ownership of certain items, such as artwork.
File Photo by John Angelillo/UPI | License Photo
Feb. 14 (UPI) -- Britain's tax-collecting agency said on Monday that it's seized three non-fungible tokens -- better known as NFTs -- and that three people have been arrested as part of a fraud case worth almost $2 million.
Her Majesty's Revenue and Customs said in an emailed statement to UPI that the seizure is believed to be the first for a British agency involving NFTs.
NFTs are digital assets that track ownership of certain items, such as artwork, memorabilia and writings. About a year ago, Twitter founder Jack Dorsey sold his first-ever tweet from 2006 as an NFT for almost $3 million. In December, a programmer sold the world's first SMS text message as an NFT for $120,000.
"Our first seizure of a non-fungible token serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC," Nick Sharp, HMRC deputy director for economic crime, said in the statement.
Feb. 14 (UPI) -- Britain's tax-collecting agency said on Monday that it's seized three non-fungible tokens -- better known as NFTs -- and that three people have been arrested as part of a fraud case worth almost $2 million.
Her Majesty's Revenue and Customs said in an emailed statement to UPI that the seizure is believed to be the first for a British agency involving NFTs.
NFTs are digital assets that track ownership of certain items, such as artwork, memorabilia and writings. About a year ago, Twitter founder Jack Dorsey sold his first-ever tweet from 2006 as an NFT for almost $3 million. In December, a programmer sold the world's first SMS text message as an NFT for $120,000.
"Our first seizure of a non-fungible token serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC," Nick Sharp, HMRC deputy director for economic crime, said in the statement.
"We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets."
The watchdog said it secured a court order to seize three pieces of digital artwork, which have not been appraised for their value, and more than $6,700 in other crypto assets. The HMRC can seize assets under British law to satisfy confiscations.
Jake Moore, an adviser at cybersecurity firm ESET, said that police can "request to keep half of the forfeited goods" -- and the other half will go to Britain's Home Office.
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"The key design of cryptocurrencies is to keep them secure and protected against interception by anyone, whether that be a threat actor or law enforcement," Moore said in a statement.
"But with a fast-moving digital world where mistakes can be made, police forces are beginning to buck the trend in how they investigate digital crime, locate evidence and finally seize digital assets."
Authorities said the unidentified suspects used phony companies, identities and addresses to earn more value-added tax, which is similar to sales tax, than they were owed. The HMRC said they used various "sophisticated methods" in the scheme.
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