Autor Cointelegraph By Prashant Jha

UK tax authority makes first NFT seizure in VAT fraud case

HM Revenue and Customs (HMRC), the chief tax authority in the United Kingdom, have seized three nonfungible tokens (NFTs) associated with a suspected tax evasion fraud.The tax watchdog claimed it was the first U.K. law enforcement agency to seize NFT. The NFT seizure came along with the arrest of three people who are suspected of evading taxes using various sophisticated means, reported BBC.The arrested suspects in the case reportedly used fake identities and created 250 fake ‘shell’ companies to evade £1.4 million ($1.8 million) in value-added taxes (VAT). HMRC obtained a court order to confiscate $6,765 (£5,000) worth of digital assets along with three NFTs from the suspects. HMRC deputy director Nick Sharp said that the recent seizures of NFTs and digital assets in the tax fraud case serve as a warning to those looking to hide money from the tax authorities. He said:”We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”Related: Laundering via digital pictures? A new twist in the regulatory discussion around NFTsWhile the tax authority’s warning to the common public is routine, it is essential to note that the confiscated digital assets and NFTs were seized as assets, which is common in tax evasion cases for authorities to make up for the losses post-court proceedings. These seized digital assets and collectibles weren’t used as a tool for the crime by themselves.NFTs have bloomed to peak popularity in 2021 and have become a trend among brands and the common public. With a rise in popularity and use cases, lawmakers have also become a common regulatory topic. These regulatory discussions are quite common and in-tune with the traditional financial market.

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Interstellar Enigma diamond sold for $4.5M in crypto

A 555-carat diamond with mysterious origins estimated to be billion years old has been sold for $4.5 million in cryptocurrency at a Sotheby’s auction.The diamond has baffled geologists over its origin, where it’s still not clear whether it came from outer space or was crystallized in the earth’s mantle. The diamond is characterized by its opaque black appearance with full of visible holes. The carbonade diamond is available in only two regions on the planet, namely Brazil and the Central African Republic. However, what makes this carbonade diamond even more mysterious is the fact that it contains an array of metals, such as the titanium nitride mineral osbornite, which is commonly found in meteorites.Sotheby’s did not reveal the buyer’s name, however, Richard Heart, an entrepreneur on Twitter claimed to be the anonymous owner of the diamond. Sotheby didn’t respond to Cointelegraph’s request for comments at the time of writing.I won the world’s largest cut diamond for our #HEXican cultural heritage! It’ll be called the https://t.co/mLZsmWqXG0 diamond, it weighs 555.55 carats and has 55 facets. Congratulations to all you #HEXicans with #5555 club https://t.co/mLZsmWqXG0 tattoos. Let’s all win together! pic.twitter.com/37mfTGbzMe— Richard Heart ETH FORK PulseChain.com,PulseX.com!❁ (@RichardHeartWin) February 9, 2022The auction house described the enormous diamond to be a very specific type of black diamond that was created either from meteoric impacts or “an extraterrestrial origin – from supernovae explosions that formed diamond-bearing asteroids which ultimately collided with the Earth.” Enigma Auction Page Source: SothebyRelated: Colin McRae’s long-lost rally car reportedly sold for Bitcoin at auctionAccording to a report published in The Sun, Stephen Haggerty, a professor of earth and environment at Florida International University claimed there is no sound scientific theory to prove its origin to be on earth. He said:“There has not been a single, scientifically sound alternative to the [extraterrestrial] origin of carbonado,”Sotheby became one of the first luxury auction houses to accept crypto as a payment starting in October 2021. Similarly,  Lloyds Auctions, an Australian auction house announced it would start accepting Bitcoin (BTC)  and other cryptos, as a payment in June 2021, and in September, the auctioneer sold Colin McRae’s long-lost rally car for $360,000 worth of BTC.Christie’s, another top auction house started it all with the sale of Beeple’s NFT that fetched a whopping $69 million, paid in Ether (ETH). More auction houses followed the suite since then as crypto has gained popularity as a mainstream hassle-free payment mode.

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Bunny and Qubit turns to DAO following $80 million bug exploit

The development team behind Bunny Finance and Qubit has decided to disband the protocol and turn it into a decentralized autonomous organization (DAO).In an official medium post published on Friday, The Bunny Finance team announced that the exploit on Qubit that resulted in $80 million worth of loss has made it impossible for the team to operate at full scale. Thus, they have decided to disband the protocols and give authority to the community.As reported earlier by Cointelegraph, the Qubit bridge called X-bridge facilitated tokens swaps from Ethereum (ETH) to Binance Smart Chain (BSC). The hacker behind the attack managed to exploit a “logical error” in the X-Bridge smart contract that allowed them to withdraw tokens on the BSC chain without depositing any on Ethereum.pic.twitter.com/G1WOMglVUU— Qubit Finance (@QubitFin) January 28, 2022The hacker managed to steal 77,162 qXETH worth $185 million and used it as collateral to borrow several assets from the lending pools worth $80 million. The borrowed tokens included 15,688 Wrapped Ether (wETH) worth $37.6 million, 767 BTC-B ($28.5 million), $9.5 million worth of stablecoin and $5 million worth of PancakeSwap (CAKE), Pancake Bunny (BUNNY) and MDX tokens.Related: Wormhole token bridge loses $321M in largest hack so far in 2022The official announcement noted that moving forward, the community will be in charge of major decision making including upgrading contracts, altering fee structure. In order to change the protocols to DAO, the development team has shut down vaults on Bunny which will no longer mint the native token. The team is also shutting down leveraged Farming Vaults and Single Asset Vaults on Qubit that were used to borrow assets.The development team has also decided to discontinue major fee structures barring unstaking and compounding fees. The team would also launch a new market on Qubit and get rid of the old model that was hacked. All team tokens would be locked in a community smart contract and profits from the contract would be utilized as a compensation pool. The existing members of the team would participate as a member of the DAO.

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Man United onboards Tezos as its official Web3 and training kit partner

Manchester United, one of the oldest soccer clubs globally, has confirmed the partnership with blockchain firm Tezos as the official training kit and technology partner.The soccer club aims to introduce its fans to the decentralized Web3 tech amid growing focus from mainstream firms and brands. The team would make its first appearance in the new kit on Saturday against SouthamptonMan United’s previous sponsorship deal with AON expired last month, and Tezos will be paying 33% on top of the previous agreement at $27 million yearly. Tezos will help the soccer club gain more exposure to Web3 technologies and might play a key role in launching various digital fan merchandise and collectibles soon.A majority of global sports brands are experimenting with blockchain and Web3 centered tech and new ways for connecting sports clubs to fans. Man United aims to build a fan ecosystem expected to be based on the concept of metaverse on Tezos blockchain, to offer personalized experiences to the fans and the platform would use the native token of the Tezos.Related: Tezos transactions and smart contract activity surge on NFT demandVictoria Timpson, Manchester United’s CEO of Alliances and Partnerships, said: “This is a hugely exciting partnership for Manchester United because it aligns us with one of the most advanced, reliable and sustainable blockchains in an area of technology which promises to truly revolutionise the way that everyone, including the Club and our fans, can interact.”Tezos, a proof of stake (PoS) blockchain, has joined the growing list of blockchain firms entering mainstream sponsorship deals. Earlier, Tezos has signed sponsorship deals with Formula 1’s McLaren Racing and Major League Baseball’s New York Mets.

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Billionaire Bill Ackman calls for crypto clarity in New York

Billionaire investor Bill Ackman has called upon New York City mayor to look into the crypto regulatory clampdowns associated with BitLicense.A New Yorker shared his aghast on Twitter about the flawed crypto policies of the city and how it could force him to leave it. The user lashed out at the Bitlicense policy of the city and claimed he could not open an account with any major United States exchange for his venture capital firm because of it.Bitlicense was introduced in 2015 that governed various aspects related to crypto issuance and exchange. Any virtual currency business operating in the state of New York or managing such investments from residents of New York must obtain the license before starting operations. However, major crypto platforms are concerned as strict licensing requirements caused some to move out.Billionaire Bill Ackman called upon newly elected city Mayor Eric Adams and Governor Kathy Hochul to look into the growing regulatory concerns. He stressed removing regulatory barriers and easing regulations could be key to making the city a crypto hub. He said: @NYCMayor @GovKathyHochul lets fix this right away. We can’t lose any more New Yorkers. NY is on its way to becoming a crypto center of innovation. Let’s remove barriers, create opportunities for growth and innovation, and help our state and city! https://t.co/H9tsG4OO9W— Bill Ackman (@BillAckman) February 9, 2022Eric Adams, the newly elected Mayor who ran the elections with crypto as the main agenda, has also come under fire recently for advocating against Bitcoin (BTC) mining in the state. During a local government budget hearing with elected officials in Albany, Adams said he supports cryptocurrency but not crypto mining.Related: A metaphor? NYC ‘solid gold cube’ crypto promo turns out to be hollowWhile many politicians over the past couple of years have shown great interest in the crypto industry and many politicians running for an election have made crypto a central agenda of their campaign. However, a majority of them seem to be using crypto just as a campaign tool.

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