PANews reported on May 31 that according to The Defiant, the U.S. Treasury Department has recently released its first NFT risk assessment report, which examines the tendency of the NFT field to be abused by illegal actors. The report highlights the many risks associated with NFT, including fraud, scams, copyright and trademark infringement, and vulnerability to money laundering activities.
The report stated: "The assessment found that NFTs are highly susceptible to fraud and scams, and are vulnerable to theft. In addition, some NFT companies and platforms lack appropriate controls to mitigate risks to market integrity and to combat money laundering, terrorist financing, and sanctions evasion. The assessment found that inadequate cybersecurity protections, challenges associated with copyright and trademark protection, and hype and price volatility of NFTs and NFT platforms may enable criminals to commit fraud and theft related to NFTs and NFT platforms.