When Eminem replaced his twitter(‘X’) profile picture with a generic cartoon primate he bought for $450k, commentators proclaimed the ascension of the ‘Non-Fungible Token’(NFT). Like crypto coins, NFTs are directly linked to a ‘blockchain’, which through a process of purchase identification affords ownership of assets in both real life and in virtual spaces.
Eminem’s artwork was an ‘ape’ of the ‘Bored Ape Yacht Club’. Each weary chimp design is unique. To hold the NFT one could not simply screenshot the picture, one must have the blockchain certificate of ownership.
Business Insider claims that at its height, the trading volume of NFTs exceeded $2.8Bn. As COVID kept us glued to our screens, many spent their stimulus or furlough funds in the growing market for NFTs seeking to ride the wave to a handsome return.
It was a virtual gold rush. John Terry released an ape-based NFT with Rio Ferdinand. NFT support businesses popped up. Even the UK Government climbed aboard the yacht; then-chancellor Rishi Sunak announced a Treasury-backed NFT in April 2022 before quietly cancelling it a year later as Prime Minister.
The market for NFTs soon died. As of early 2024, 95% of NFTs are now effectively worthless. Amid the volatility emerged a rich vein in NFT fraud. Under the Proceeds of Crime Act, prosecutors can confiscate the benefits of NFT fraud, the resultant funds finding their way into the Exchequer’s coffers. As such, those individuals who made significant sums at the height of NFT value may yet lose it all to heavily incentivised prosecuting agencies.
Since NFTs are by their nature remote purchases, consumers are made to interact with more websites and online services than they usually might. The lack of reliable human interface and weak regulation cracked the door wide open for fraud. As such, there are countless NFT frauds, which are serious criminal offences. Some select examples:
There is no unique legal basis for NFT frauds; they usually follow pre-established fraud offences. However, given the online and multi-jurisdictional nature of NFTs, investigations can fast become complex.
Expert legal advice can help suspects navigate these complexities while avoiding the many ‘bear traps’ in their way.
If you are arrested for this offence, you will be taken to a police station for the purpose of being interviewed under caution. Among other rights you have the right to be represented at this interview by a solicitor free of charge. This is usually a duty solicitor nominated by the police. You also have however the right to nominate a solicitor of your choice. The solicitor will be able to obtain some information from the investigators about why you have been arrested and will be able to discuss this with you and provide you with advice prior to the interview.
ABV Solicitors have expert fraud solicitors able to attend the police station on short notice nationwide.
Upon receipt of such a letter it is critical that you seek the assistance of a solicitor immediately. ABV Solicitors will allocate a specialist fraud solicitor for you and make arrangements on your behalf to liaise with the investigators and facilitate an interview at your convenience.
This will allow sufficient time for you to arrange a face-to-face meeting with a specialist solicitor in advance of any interview so you can be advised, and fully prepared on what to expect.
We are here to fully support you and those concerned during this difficult time. Obtaining immediate legal advice can make all the difference to the outcome of the investigation.
This can be an extremely stressful time for you, your family and your business.
You may have already been interviewed and released on bail or released under investigation. You may have not used a solicitor at all during your interview or are not confident with the solicitor who represented you and require a specialist solicitor with experience in this area.
Whatever the situation, ABV Solicitors have a dedicated team of experts who are experienced in allegations of NFT fraud and who can provide you with sound advice and assistance.
If you have been charged with NFT fraud you must seek the assistance of a defence specialist immediately. ABV Solicitors have a dedicated Fraud and Financial Crime department consisting of experienced solicitors who are specialists in this field.
ABV Solicitors can provide immediate advice and assistance and assist you during this stressful time.
Law enforcement agencies such as the police, HMRC, FCA or SFO often use ancillary powers in addition to making arrests and search warrants. These include applying for Restraint Orders or Account Freezing Orders under the Proceeds of Crime Act 2002.
The purpose of this is to prevent those under suspicion to dissipate assets which may have been acquired through the commission of committing offences.
These Orders are draconian and can cause severe disruption to the lives of individuals and those connected to them including their businesses.
ABV Solicitors have a dedicated team of experts within their Fraud and Financial Crime Department who specialise in tackling these Orders.
If any of the above circumstances apply to you or someone you know contact ABV Solicitors Fraud and Financial Crime Department immediately on 0344 587 9996 or visit our website at www.abvsolicitors.co.uk
ABV Solicitors are available 24/7 and offer their professional expertise and assistance nationwide.
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