NFTs seized in UK anti-fraud operation

NFTs seized in UK anti-fraud operation

key point

  • The first NFT was caught;
  • The HMRC seized three non-fungible digital artwork tokens;
  • NFT is an acronym for the term nonfungible token or “non-fungible token”.

The United Kingdom has seized NFTs for the first time as part of an operation against a fraud case worth about $1.9 million. The UK Revenue Office has seized three non-fungible digital artwork tokens, as well as $6,700 in crypto assets.

The official also cautioned that this is a warning to those who believe digital assets can be used to hide funds.

The information comes from the UK tax authority HMRC (HMRC) and was originally linked to BBC News.

The UK government sees the first seizure of NFTs as a milestone in the fight against money laundering, scams, fraud and other types of financial crime involving digital assets.

Last Sunday (13th), three arrests were made on suspicion of fraud, and operations involving 250 fake companies were released. According to HMRC, they used all possible mechanisms to hide criminal activity, including fake addresses, prepaid phones, VPNs and even identity theft.

However, given the nature of digital wallets, private keys and the blockchain network itself, confiscation of NFTs did not give the UK tax authority control over the tokens. Instead, HMRC used court orders to block the deals and prevent them from being sold. Overall, the fraud is estimated at $1.9 million.

Unprecedented Seizures​​

Cryptocurrencies took off in the last year, and because of this, Mass seizures are becoming more common.

Last week, the U.S. Department of Justice seized $3.6 billion worth of Bitcoin (BTC) related to the 2016 Bitfinex hack, the largest cryptocurrency seizure in history.

Concerns about NFTs are rare and HMRC is keen to highlight the importance of UK-first measures.

According to Nick Sharp, deputy director of HMRC’s Economic Crime Unit, authorities “are constantly adapting to new technologies to understand how criminals and tax evaders seek to hide their assets.” In an interview BBC Newshe said the seizure “is a warning to anyone who thinks they may be using crypto assets to hide funds from HMRC.”

What is NFT?

NFT is an acronym for the term non-fungible token, or “non-fungible tokens”. These are tokens, digital codes with digital transfer registrations that guarantee the authenticity of their owners.

Therefore, they function as collectibles, which cannot be played, but can be transferred. Unlike cryptocurrencies such as Bitcoin and various utility tokens, NFTs are not interchangeable with each other.

NFTs can actually be anything digital, but a lot of the “hype” revolves around digital art. These can represent almost any type of item, real or intangible, including:

– Art work;

– virtual items in video games, such as skins, digital currency, weapons and avatars;

– songs;

– collectibles, such as digital cards;

– Tokenize real-world assets, from real estate and cars to race horses and branded shoes;

– virtual land;

– Videos of iconic moments in motion.

There is a lot of support for the digitization of this art, with the NFT market exploding with over $400 million in transactions in the first few months of 2021 alone.

What can NFTs be?

Physical and digital boards, music, game items, memes, photos of sports moments, website domains, videos and even social media posts can all become non-fungible tokens.

What is the most expensive NFT in history?

Beetle series

creator Mike Winkelmann, better known as Beeple, is a digital artist who has worked for major American companies. A few months ago, he had nothing to do with the art market.

the day On March 11, Beeple sold a JPG file titled “Everydays – The First 5000 Days” for $69.3 million. This piece is a collage of all the pieces Beeple has created in the past 5000 days.

His collection includes other valuable works such as “Infected Culture” valued at $288,000.

Cypherpunk #3100

creator Larva Labs, a company that calls itself “the home of our professional and experimental projects.” It is led by software engineers Matt Hall and John Watkinson.

CryptoPunk is the company’s most famous series of NFTs, consisting of 10,000 pixelated dolls with unique characteristics such as clothing, skin color, gender, and race (alien, zombie, ape, and humanoid). The most valuable doll is CryptoPunk 3100, one of 9 rare alien punks.

The CryptoPunk 7804 was sold for the same price in Ether, but the currency was worth less against the U.S. dollar at the time of purchase.

first tweet

The first tweet was posted by Jack Dorsey, creator of Twitter, founder of Square, and a big investor in Bitcoin.

The price of the first tweet is still 2.5 million or 1630.5825601 ether. This means that prices could still rise due to this historic NFT.

Landing game Axel Infinity

Its creator is Sky Mavis, the studio behind the famous blockchain game Axie Infinity.

Blockchain games also benefit from NFTs, where rare items are sold for free among gamers. One of those items is lands in Axie Infinity, a game inspired by the Pokémon universe where players can fight, collect, grow and build kingdoms for their pets.

the best i can do

The creator of this work is Justin Rowland, one of the creators of the famous Rick and Morty cartoons. In addition to being a voice actor, director, and game studio owner, Justin sells art on the blockchain. How many talents.

“The First Rick and Morty Crypto Art” from the “The Best I Can Do” series sold for $150,000, raising over $1 million.

Jennifer Freitas

Jheniffer Aparecida Corrêa Freitas holds a degree in journalism from the University of Mogi das Cruzes. She has worked as a press officer at the São Paulo State Secretariat of Public Safety and the São Paulo State Secretariat of Health.For two years, she served as editor of the magazine Roosevelt Portalwhere he gained a lot of experience producing popular economic and financial news.

Leave a Comment

Your email address will not be published.