US Treasury Flags NFTs For Vulnerability To Fraud, Scam

NFTs are rarely used in terror financing, but they remain highly vulnerable to fraud and scams, the U.S. Treasury Department said. (Credit: Marco Verch/flickr)

KEY POINTS

• Criminals may use NFTs to carry out rug pulls, the Treasury Department said
• Copyright and trademark vulnerabilities may also be used by criminals to conduct their illicit activities
• Remilia co-founder claimed earlier this year that hackers stole millions worth of ETH and NFTs from his wallet

The U.S. Treasury Department has raised red flags about the vulnerability of non-fungible tokens (NFTs) to fraud and scams, reiterating that such vulnerability can be exploited by criminals.