UK tax authority seizes NFT for the first time

HM Revenue and Customs (HMRC) says three people have been arrested on suspicion of attempting to defraud £1.4 million. Authorities say it is the first British law enforcement agency to seize the NFT. NFTs are assets in the digital world that can be bought and sold but have no tangible form of their own. Digital tokens, which appeared in 2014, can be thought of as certificates of ownership for virtual or physical assets. NFTs have a unique digital signature so they can be bought and sold with traditional currencies or cryptocurrencies, such as Bitcoin. Where Bitcoin is hailed as a digital answer to currency, NFTs are seen as a digital answer to collections, but many skeptics fear they are a bubble ready to burst.HMRC said the suspects in its scam allegedly used "sophisticated methods" to try to conceal their identities, including fake and stolen identities, fake addresses, phones, unregistered prepaid cell phones, virtual private networks (VPNs), fake bills, and fake engaging in legitimate business activities. Nick Sharp, deputy director of economic crime, said the first  NFT arrest "is a warning to anyone who thinks they may be using crypto assets to hide money from HMRC". "We're constantly adapting to new technologies to ensure we keep pace with how criminals and fugitives seek to hide their assets." HMRC said it has received a court order to hold confiscated crypto assets worth approximately £5,000 and three NFT digital artworks, which have not yet been appraised, while its investigation continues.