Latvian artist is being investigated for selling NFTs (or non-fungible tokens) to laundering money. He could face up to 12 year imprisonment. His bank accounts were blocked and an investigation started without him being notified.
Latvian Money Laundering Court Prosesses Artist who Sold More Than 3,500 NFTs
Latvian artist and developer Ilya Borisov is awaiting trial amid accusations he used digital collectibles to launder €8.7 million ($8.8 million), as investigators claim to have established. He has denied any wrongdoing, and is determined seek justice at the court.
Borisov launched a website under the ‘Art ― Crime’ title, which reveals how the Latvian government froze his accounts without any formal notice. The artist was charged with a criminal offense in February. He only learned about the case in May.
According to the website, Borisov sold 3,557 NFTs for the money in question. Bits.media quotes Borisov, who insists he did nothing to avoid taxes and has even asked the revenue agency for clarification. In 2021 alone, he paid around €2.2 million in income tax.
Borisov was convicted of large-scale laundering money and could be sentenced to up 12 years imprisonment. According to Borisov, the accusations have profoundly affected his morality. The artist, a Russian by origin, also fears that Moscow’s military invasion of Ukraine might influence the judges’ decision in his case.
Ilya Borismov stressed the benefits of blockchain technologies for artists and accused regulators in limiting those opportunities.
Non-fungible Tokens Gain Popularity Among Regulating The Market
NFTs are a common tool for proving ownership of digital records or assets. Global demand for non-fungible tokens is estimated to be between $20 billion and 35 billion. One forecast suggests that the market could grow to $80 billion in 2025.
These digital collectibles were used for fundraising. To raise over $100,000, Ukraine purchased a Cryptopunk NFT earlier this year. The NFT was donated by the Ukrainian government to aid war-torn Ukraine. Cryptopunks was an NFT collection that uses the Ethereum blockchain. It was established in 2017.
NFTs have been regulated by authorities around the world. The latest draft of the EU’s Markets in Crypto Assets (MiCA) proposal excludes NFTs but European officials should decide whether separate regulations are needed for them within 18 months.
A bill regarding NFTs in Russia was submitted to the lower chamber of Parliament in May. And in China, where the term ‘digital collectibles’ is preferred to avoid association with cryptos, NFTs have enjoyed a growing popularity, but restrictions on secondary trading have reportedly convinced tech giants like Tencent to pull out of that market.
Your thoughts about the NFT case against Latvia? Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.
