The UK Government has seized three NFTs as part of a fraud investigation.
Her Majesty’s Revenue & Customs seized the non-fungible tokens as part of an investigation into the alleged attempt to defraud HMRC of £1.4 million ( $1.91 million) in revenue.
Three people were arrested for alleged fraud involving 250 fake companies.
HMRC allege the three accused used sophisticated methods to try to hide their identities, including using false addresses, pre-paid and unregistered mobile phones and VPNs.
HMRC Deputy Director of Economic Crime Nick Sharpe said the arrests served “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,” he said.
It is the first recorded seizure of NFTs in a tax investigation.