The U.S. Treasury Department released a risk assessment report on NFTs, stating that NFTs are susceptible to fraud and money laundering activities

ChainCatcher news, according to The Defiant, the U.S. Department of the Treasury has recently released its first NFT risk assessment report, which examines the tendency for the NFT space to be exploited by illicit actors. The report highlights numerous risks associated with NFTs, including fraud, scams, copyright and trademark infringement, and vulnerabilities to money laundering activities.

The report states: "The assessment found that NFTs are highly susceptible to fraud and scams and are easily subject to theft. Additionally, some NFT companies and platforms lack adequate controls to mitigate risks to market integrity and to combat money laundering, terrorist financing, and sanctions evasion. The assessment found that insufficient cybersecurity protections, challenges related to copyright and trademark protections, and the speculation and price volatility of NFTs and NFT platforms may enable criminals to perpetrate fraud and theft related to NFTs and NFT platforms."