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UK tax authorities seize NFTs for the first time

The UK’s tax department, Her Majesty’s Revenue and Customs (HMRC), says it’s the first authority in the country to seize an NFT, BBC News reports. Three people were arrested in connection with a PS1.4million (roughly $1.9million) fraud case. The authority seized PS5,000 worth of crypto assets (around $6,762) alongside three NFT artworks which have yet to be valued.

As cryptocurrencies have increased in value, authorities are increasingly taking high-profile seizures. Just this month the USA’s Department of Justice seized $3.6 billion worth of cryptocurrency linked to the 2016 Bitfinex hack. This is the first major seizure of NFTs, digital assets used to prove ownership of media such as images and songs.

According to HMRC’s deputy director of economic crime, Nick Sharp, the authority “constantly adapt[s] to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.” He told BBC News the seizure “serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC.”

The suspected fraud is alleged to have involved 250 fake companies, and the three suspects apparently used everything from fake addresses, pre-paid phones, VPNs, and stolen identities to hide their activities from HMRC. Sky News reports that HMRC has not taken control of the NFTs, but that it is using a court order to prevent them from being sold.

This is not likely to be the last time that authorities seize NFTs. Recently an IRS special agent noted that the agency is increasingly focusing on crypto-assets because of the “mountains” of fraud it’s seeing in the area, Bloomberg Quint reported. With individual NFTs being sold for millions as part of an industry valued at around $16 billion, it’s inevitable that authorities will start becoming more involved.

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Report: SEC Concludes Opensea Probe, Drops Enforcement Threat Over NFTs

The U.S. Securities and Exchange Commission (SEC) has reportedly ended its investigation into Opensea and will not pursue enforcement action against the non-fungible token (NFT) marketplace over allegations that its NFTs constituted unregistered securities, the company confirmed to Bloomberg this week. Following Coinbase, SEC Ends OpenSea Investigation Under Trump’s Regulatory Climate Opensea…
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A Beginner’s Guide to Crypto AI Agents

First, it was Bitcoin. Then defi. Then NFTs. Now, AI is taking the crypto world by storm, unlocking new possibilities (and new riches). If you’re not paying attention, you’re about to miss one of the most explosive narratives of the cycle. This piece is a guest post by Blocmates…
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NFT Market Stumbles in January: Sales Drop 39% in Rocky Opening to 2025

Based on data gathered from Jan. 1 through Jan. 31, 2025, non-fungible token sales (NFT) experienced a 38.97% decline compared with the final month of 2024. Ethereum led in sales by amassing $340.47 million, although transactions on that particular chain registered a 36.58% decrease from the previous month…
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