The world of digital assets is certainly a trailblazing sector with plenty of innovations, but at the end of the day, it is still beholden to the same general rules that the rest of the financial system must follow. This is something you should keep in mind, whether you are trading NFTs, minting NFTs, selling NFTs, or buying NFTs. Fraud is rampant in the financial world, and you need to stay on the right side of the law while avoiding being scammed yourself. But do you need to know about NFT fraud?
If you are experiencing issues with NFT fraud, it makes sense to get in touch with a commercial litigation attorney as soon as possible. With our assistance, you can deal with fraudulent transactions and protect yourself from a legal standpoint. It makes no sense to simply sit back and accept these consequences – especially if you can turn to a qualified attorney for help. It is best to book your consultation as soon as possible.
Insider Trading and Money Laundering is Still Possible With NFTs
It is still possible to deal with insider trading and money laundering issues when trading NFTs. This became quite clear in early June of 2022, when an employee of the NFT marketplace OpenSea was charged with both offenses. He had allegedly been using confidential information to purchase and sell NFTs. However, experts were quick to note that the NFTs still are not classified as securities by the SEC, which means this does not count as securities fraud. It does, however, indicate that the government is quite committed to investigating fraud in the world of cryptocurrencies and digital assets, and this has been a growing trend as of late.
Other Examples of NFT Fraud
Truth be told, insider trading is the least of the NFT market’s worries when it comes to scams and frauds. There are countless other examples of NFT fraud. For example, hackers can exploit flaws in NFT marketplaces to purchase tokens for significantly less than their asking price. These marketplaces often turn around and offer pitiful sums in compensation, but the truth is that OpenSea and companies like it can be sued for these flaws under certain circumstances. As of June 2022, OpenSea has paid out more than $6 million in compensation to NFT traders who lost huge sums of money due to the marketplace’s issues.
Some have also pointed out that NFT marketplaces like OpenSea have an incentive to allow stolen NFTs to be flipped on their platform, since they earn a commission on every sale. Why would they stop a sale that would earn them a significant amount of cash? That is certainly a question many people are asking today.
Enlist the Help of a Qualified Attorney Today
If you have been searching for a qualified, experienced commercial litigation attorney, look no further than The Glassman Law Group. With our assistance, you can strive for the best possible results, protecting your assets and avoiding various consequences associated with fraud (or any other form of fraud for that matter). It is important to book your consultation as soon as possible. From there, we can get started on an effective action plan.