The IRS has arrested three people linked to alleged tax evasion. These individuals set up shell companies and used fake identities.
The UK's top tax authority has seized three non-fungible tokens (NFT) linked to suspected tax evasion.
The Tax Inspectorate claimed it was the first UK authority to confiscate NFTs. In addition to the confiscation of the NFTs, three people suspected of using sophisticated means to evade taxes have also been arrested, the BBC reports .
The suspects are said to have used fake identities and set up 250 shell companies to evade £1.4 million in taxes.
The UK Internal Revenue Service obtained a court order to confiscate £5,000 worth of digital assets and three NFTs from the suspects. Deputy Director of the UK's top tax authority, Nick Sharp, said this seizure of NFTs and digital assets linked to tax fraud was a warning to those trying to hide money from tax authorities. He explained:
"We are constantly adapting to new technologies to ensure we can keep up with the methods criminals and tax evaders are using to hide their wealth."
In this context: money laundering with digital images? New twist in the regulatory discussion surrounding NFTs
The tax authority has already issued several warnings. It is also worth mentioning here that the confiscated digital assets and NFTs were confiscated as assets. This is common in tax evasion cases so the authorities can recover losses after the court case. These confiscated digital assets and collectibles were not used as tools in the crime.
The popularity of NFTs has exploded in 2021 and has become a trend among large companies and private individuals. As the popularity of NFTs continues to grow and the use cases for them continue to expand, regulatory debates among legislators have also increased. Such regulatory discussions are quite common and also exist in the traditional financial market.
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