A Latvian artist is under investigation for allegedly selling non-fungible tokens (NFT) to launder money, for which he could face up to 12 years in prison He is facing up to 12 years in prison for this. Authorities sealed his bank accounts and initiated an investigation without notifying him.
An artist who sold more than 3,500 NFTs was charged with money laundering in Latvia.
Latvian artist and developer Ilya Borisov is awaiting trial, accused of using digital collectibles to launder €8.7 million ($8.8 million), as investigators have established. He denies any wrongdoing and is determined to seek justice in court.
Borisov has set up a website titled “Art – Crime” to reveal how the Latvian government froze his accounts without formal notification; a criminal trial began in February, but he did not learn of it until May.
According to the website, the Latvian sold 3,557NFTs to generate income. NFTssold to earn the amount in question. Borisov, quoted by crypto news outlet Bits.media, claimed that he did not try to avoid taxation and even asked the Revenue Department for clarification on the matter. in 2021 alone, he paid about €2.2 million in income taxes.
However, Borisov is now charged with large-scale money laundering and could face up to 12 years in prison. He says he has been deeply affected morally by the allegations. The Russian-born artist also fears that Moscow’s military incursion into Ukraine will influence the judge’s decision.
Ilya Borisov emphasized that blockchain technology creates many opportunities for artists like himself and accused regulators of greatly limiting these opportunities.
Non-monster tokens gain popularity
amidst attempts to regulate the market.
Over the past few years, NFTs have gained popularity as a tool to prove ownership of digital records and assets, especially works of art, music, and videos. The global market for non-fundable tokens is estimated to be between $20 billion and $35 billion. One estimate suggests it could reach $80 billion by 2025 and is expected to grow even more.
Digital collectors have been used to raise funds for a variety of purposes. Earlier this year, Ukraine raised over $100,000 from the sale of cryptopunk NFTs donated to help the war-torn country. Cryptopunksis a collection of NFTs on the Ethereum blockchain launched in 2017.
Authorities around the world are trying to regulate NFTs alongside cryptocurrencies; the latest draft of the EU’s Markets in Crypto Assets (MiCA) proposal excludes NFTs, but European authorities will decide within 18 months whether separate regulations for NFTs are need to decide whether a separate regulation on NFTs is necessary.
In Russia, a bill on NFTs was introduced in the lower house of parliament in May. NFTs are also growing in popularity in China, where the term “digital collectibles” is preferred to avoid association with cryptography, but restrictions on secondary trading have reportedly led tech giants such as Tencent to exit that market.
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