Criminals are using NFTs to hide identity: The first case found in the UK

Criminals are using NFTs to hide identity: The first case found in the UK 4

The UK investigation agency seized three NFTs collectibles from a fraudster, who were using NFTs to hide their identity

The entry of the NFTs concept in the crypto industry resulted in a game-changer move for this crypto Industry. Many non-crypto people entered rapidly into the crypto industry because of their interest to monetize their content digitally. Now NFTs concept in this crypto industry seems going to take a new turn to spoil this industry to a significant extent. 

Recently Her Majesty’s Revenue and Customs, UK Tax agency, arrested three people. Arrested people were trying to trick people through their false identity to facilitate $1.89 million worth of scams. 

However the use of NFTs was not under the intention to facilitate scams but in fact, these fraudsters were using it to hide their identities. 

According to HMRC, arrested people were involved in fraud activities and also owner of around 250 fake companies. Agency noted that these people were using false address details, false invoices, unregistered mobile phones, and stolen identities to show that they are doing high scale genuine businesses. 

Nick Sharp, deputy director HMRC, said that this case is proof that using crypto assets to hide earnings or facilitate illegal transactions or activities is not possible.

“(The NFT seizure) serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC. We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”

HMRC also stated that it was the first case in the UK where the agency found that criminals were hiding their identities through the NFTs’ use, instead to facilitate direct illegal activities. 

It was interesting to know about this case and how HMRC seized the NFTs because these are part of private key and blockchain Network verification. The agency didn’t provide any details on this matter.

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