The U.K.’s. HM Revenue & Customs (HMRC) has made its first non-fungible token (NFT) seizure. British authorities also seized some crypto and arrested three people in a fraud case involving 250 allegedly fake companies. “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.”
NFTs and crypto assets seized by UK tax authorities
Britain’s HM Revenue & Customs (HMRC) said on Monday it seized three non-fungible tokens (NFTs) and a cryptocurrency worth around £5,000 as part of an ongoing fraud investigation. Three people were also arrested.
The U.K.’s tax, payments, and customs authority added that it was HMRC’s first-ever NFT seizure. The seized digital art NFTs have not been appraised.
The ongoing value added tax (VAT) refund fraud case involves 250 allegedly fake companies accused of defrauding public coffers of 1.4 million pounds ($1.9 million).
The suspects allegedly attempted to claim back more VAT than what they were owed. HMRC said they used “sophisticated methods” to hide their identities, including using stolen IDs, fake addresses, prepaid unregistered mobile phones, virtual private networks (VPNs), and phony invoices. They pretended to engage in legitimate business activities.
Nick Sharp, Deputy Director Economic Crime in HMRC’s Fraud Investigations Service, said:
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.
“We are constantly adapting to new technologies to ensure that we keep pace with how criminals and fraudsters seek to conceal their assets,” he said.
