UK Tax Authority Seized Three NFTs Suspected On Tax Evasion Fraud

The UK Tax authority seized three NFTs that were associated with a suspected tax evasion fraud and also made three arrests related to the case as we can see further in today’s latest cryptocurrency news.

Three people were arrested in connection with a suspected tax evasion using shell companies and fake IDs. The UK Tax Authority seized three nonfungible tokens that were associated with tax evasion fraud. The Tax regulator claimed that it is the first UK law enforcement agency to seize NFTs whcih came along with the arrest of three people who are suspected of evading taxes by using quite sophisticated methods. The arrested suspects in the case used fake identities and created 250 fake “Shell companies” to drain $1.8 million in value-added taxes-VAT.

The HMRC obtained a court order to confiscate $6765 worth of crypto along with three NFTs from the suspects. The HMRC deputy director Nick Sharp said that the recent seizure of NFTs and the digital assets in the tax fraud case serves as a warning to those that want to hide money from the tax authorities:7

“We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”

While the tax authority’s warning to the common public is routine, it is essential to note that the confiscated NFTs were seized as assets which are quite common in tax evasion cases for the authorities to make up the losses in the court proceedings. The seized assets and collectibles were not used as a tool for the crime by themselves. NFTs surged in popularity in 2021 and even became a trend among brands and the common public so with the rise in popularity and use cases, the lawmakers became a common regulatory topic and these discussions are getting even more popular in tune with the traditional financial market.

As recently reported, According to the news outlets in the country, the UK Tax agency is now doubling down on crypto tax evaders starting from next month. The HMRC is looking for a provider of crypto-asset and blockchain analysis software that can track Bitcoin and other crypto transactions. The agency recently opened a $130,000 licensing contract that can acquire analysis software to monitor and trace crypto transactions.