U.S. Treasury Describes NFTs as 'Highly Susceptible to Use in Fraud and Scams'
The U.S. Treasury Department has identified non-fungible tokens (NFTs) as being highly susceptible to fraud, scams, and theft. The department's risk assessment suggests that NFTs can be used to launder money from criminal activities, often in combination with other methods to hide the illicit source of the proceeds. The Treasury also found that NFT platforms lack sufficient controls to prevent money laundering and sanctions evasion. As a result, it recommends further regulation of NFTs and the platforms on which they are traded. This assessment focuses on the financial aspect of the NFT market, contrasting a U.S. government study in March that concluded no specific legislation was needed to address copyright and trademark infringement concerns.
