UK seizes NFTs for the first time in the fight against tax fraud

LONDON (Reuters) – British tax authorities on Monday reported their first seizure of non-fungible NFT coins as part of a crackdown on suspected criminal activity to hide funds.

The British Treasury has confiscated three NFTs after investigating an attempt to defraud the British public treasury with 1.4 million pounds ($ 1.9 million).

Other crypto assets worth around £5,000 were also seized.

The investigation also led to the arrest of three people for fraud in the refund of value-added tax, which included 250 fictitious companies.

Nick Sharp, deputy director of economic crimes at the UK Treasury, said the NFT seizures, which have yet to be evaluated, serve as a warning to anyone who thinks they can use crypto assets to hide funds.

“We are constantly adapting to new technologies to ensure we keep up with criminals and tax evaders looking to hide their assets,” the Treasury said in a statement.

NFTs are a type of crypto asset that uses blockchain technology to represent ownership of digital files such as photos, videos, and even items within online games.

(dollar = 0.7404 pounds)

(Writing by William Schomberg; Editing by Kate Holton; Translated by Dario Fernandez)