Latvian artist threatened with prison for money laundering through NFTs – Bitcoin News

An artist from Latvia is under investigation for allegedly selling NFTs, or non-fungible tokens, to launder money, for which he could face up to 12 years in prison. Authorities have frozen his bank accounts and launched an investigation without even notifying him.

Artist who sold over 3,500 NFTs indicted for money laundering in Latvia

Latvian artist and developer Ilya Borisov is awaiting trial over allegations that he used digital collectibles to launder €8.7 million ($8.8 million), which investigators claim to have established. He denies any wrongdoing and is determined to seek justice in court.

Borisov launched a website under the title ‘Art ― Crime’, which reveals how the Latvian government froze his accounts without formal notice. A criminal case was opened 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 crypto news Bits.media, Borisov insisted that he was not trying to avoid taxation and even asked the tax service for clarification on the matter. In 2021 alone, he paid around 2.2 million euros in income tax.

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

Ilya Borisov stressed that blockchain technologies create many opportunities for artists like himself and accused regulators of greatly limiting these opportunities.

Non-fungible tokens are enjoying popularity amid efforts to regulate the market

In recent years, NFTs have become a popular tool for proving ownership of digital records and assets, especially artwork, music and video. The global market for non-fungible tokens is estimated at between 20 and 35 billion dollars. Expectations are that it will grow further with a forecast suggesting it could reach $80 billion by 2025.

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

Authorities around the world have attempted 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 presented to the lower house of parliament in May. And in China, where the term “digital collectibles” is preferred to avoid association with crypto, NFTs have seen a surge in popularity, but restrictions on secondary trading have reportedly convinced tech giants like Tencent to pull out of that market.

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’ quote: “To be 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.