Latvian Artist Threatened With Prison for Money Laundering Through NFTs

Latvian Artist Threatened With Prison for Money Laundering Through NFTs

An artist from Latvia is under investigation for allegedly selling NFTs, or non-fungible tokens, to launder money, for which he may get up to 12 years in prison. The authorities have blocked his bank accounts and launched an investigation without even notifying him. Artist Who Sold Over 3,500 NFTs Prosecuted for Money Laundering in Latvia

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 denies any wrongdoing and is determined to seek justice in court.

Borisov launched a website under the ‘Art ― Crime’ title, which reveals how the Latvian government froze his accounts without any formal notice. A criminal case was initiated against the artist in February, but he only found out about it in May.

According to the site, the Latvian sold 3,557 NFTs to earn the amount in question. Quoted by the crypto news outlet Bits.media, Borisov insisted he did not try to avoid taxation and even asked the revenue service for clarification on the matter. In 2021 alone, he paid around €2.2 million in income tax.

However, Borisov is now prosecuted for large-scale money laundering and may potentially receive up to 12 years in prison. He says the allegations have deeply affected him morally. The artist, a Russian by origin, also fears that Moscow’s military invasion of Ukraine might influence the judges’ decision in his case.

Ilya Borisov emphasized that blockchain technologies create a lot of opportunities for artists like himself and accused regulators of limiting these opportunities to a great extent. Non-Fungible Tokens Enjoy Popularity Amid Attempts to Regulate The Market

Over the past few years, NFTs have become a popular tool to prove ownership of digital records and assets, especially works of art, music, and video. The global market for non-fungible tokens has been estimated at between $20 billion and $35 billion. Expectations are it will grow even further with one forecast suggesting it may reach $80 billion by 2025.

The digital collectibles have been used to raise funds for various causes. Earlier this year, Ukraine sold a Cryptopunk NFT, donated to support the war-torn country, to collect more than $100,000. Cryptopunks is an NFT collection on the Ethereum blockchain which was launched in 2017.

Authorities around the world have been trying to regulate NFTs alongside cryptocurrencies. 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.

In Russia, a bill on NFTs was filed with the lower house 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. Tags in this story artist, Case, Crypto, Cryptocurrencies, Cryptocurrency, Developer, Digital Tokens, Investigation, Latvia, Latvian, Money Laundering, nft, NFTs, Non-fungible tokens, prosecution, Russia, russian, Tax, Taxation, Taxes, Tokens, Ukraine, ukrainian

What are your thoughts on the NFT case in Latvia? Tell us in the comments section below. Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Report: Digital Currency Exchange Kraken Under Investigation for Violating OFAC Sanctions NEWS | 1 hour ago Zebedee Inks Deal With Mobile Game Studio Viker to Add BTC Rewards to Solitaire, Sudoku, Missing Letters NEWS | 7 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNFT Sales Volume Slips 8% Lower Than Last Week — Moonbirds, Electricsheep, Moonbirds Oddities Lead in Sales Next articleReport: Digital Currency Exchange Kraken Under Investigation for Violating OFAC Sanctions Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament

A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design