The tax authority has seized three NFTs during an investigation into a suspected organised VAT repayment fraud involving 250 alleged fake companies.

Three people have also been arrested on suspicion of attempting to defraud HMRC of £1.4m with the tax authority securing a court order to detain the seized crypto assets worth around £5,000 and three digital artwork NFTs, which have yet to be valued, while the investigation continues.

HMRC stated that the suspects, who cannot be named, are alleged to have used ‘sophisticated methods’ to try and hide their identities including false and stolen identities, false addresses, pre-paid unregistered mobile phones, virtual private networks (VPNs), false invoices, and pretending to engage in legitimate business activities.

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