The U.S. Treasury Department released its first NFT risk assessment report, emphasizing related risks such as fraud and money laundering

According to PANews, the U.S. Treasury Department recently released its first NFT risk assessment report, examining the tendency of the NFT field to be abused by illegal actors. The report highlights the numerous risks associated with NFT, including fraud, scams, copyright and trademark infringement, and vulnerability to money laundering activities.

The report points out that NFTs are highly susceptible to fraud and scams and are vulnerable to theft. Some NFT companies and platforms lack appropriate controls to mitigate risks to market integrity and combat money laundering, terrorist financing and sanctions evasion. Inadequate cybersecurity protection, challenges associated with copyright and trademark protection, and hype and price fluctuations of NFTs and NFT platforms may enable criminals to commit fraud and theft related to NFTs and NFT platforms.