According to PANews, the US Treasury Department has recently published its inaugural risk assessment report on Non-Fungible Tokens (NFTs). The report scrutinizes the tendency of NFTs to be misused by illicit actors. It highlights numerous risks associated with NFTs, including fraud, scams, copyright and trademark infringements, and vulnerabilities to money laundering activities.
The report states, 'The assessment found that NFTs are highly susceptible to fraud and scams and are prone to theft. Moreover, some NFT companies and platforms lack appropriate control measures to mitigate risks to market integrity, as well as combat money laundering, terrorist financing, and sanction evasion. The assessment found that insufficient cybersecurity protection, challenges related to copyright and trademark protection, and the hype and price volatility of NFTs and NFT platforms, could enable criminals to commit fraud and theft related to NFTs and NFT platforms.'