Major NFT platform The Cent has announced the suspension of sales of blockchain-backed digital arts for the time being.
The decision to stop most of its transactions was made after details emerged that some people were involved in fraudulent activity on the platform.
NFT market halts sales
Specifically, bad actors took advantage of the anonymity offered by the space to sell items that did not belong to them.
The Cent rose to fame when he sold the screenshot of the first Twitter tweet for millions. The platform was one of the first marketplaces to record a transaction that garnered massive attention across the space and also attracted the first known $1 million NFT sales.
While the NFT space has since grown to become an integral part of the broader crypto industry, it has also established itself as a giant in its own right, as posted a rebound in growth and interest despite broader crypto market crash in January.
However, there have been reports and indications that the NFT space has become overrun with scams, fakes, and “wash trade.” A recent Chainalysis report revealed the extent of the rot in the NFT space.
Speaking about this, the CEO and co-founder of The Cents called it a “fundamental problem” and added that:
“There’s a spectrum of activity that’s going on that basically shouldn’t be going on, like, legally,”
He went on to say that the issues the platform was selling could be divided into three categories; the first category is the fact that some people are selling unauthorized copies of other people’s NFTs, the second category is those who make other people’s NFTs, and finally those who sell NFTs that could be classified as securities.
This has forced the Cent market “beta.cent.co” to temporarily pause its NFT put option; however, sales of NFT tweets are still very active.
UK seizes 3 NFTs
In another development, the UK’s main tax authority, Her Majesty’s Revenue and Customs (HMRC) has attorney three NFTs as part of an investigation into suspected VAT fraud involving 250 alleged fake companies.
Authorities revealed that three people were also arrested on suspicion of trying to defraud him of £1.4 million, adding that this was the first time law enforcement in the country had seized the digital tokens.
Speaking about the arrest, HMRC Deputy Director Nick Sharp revealed that the seizures would deter others from hiding their assets from tax authorities.
The issue of taxes has become a very important issue in the cryptocurrency industry due to the different regulations guarding space in different countries. While many seek to tax the burgeoning space, others have yet to make their intentions known.
Featuring a roundup of the biggest daily stories in the world of crypto, DeFi, NFT, and more.
Obtain a edge in the crypto market
Access more information and crypto context in each article as a paid member of CryptoSlate Edge.
Join now for $19/month Explore all the benefits
This post “Plagiarism” and “wash trading” issues forced the NFT market to suspend sales
was published first on https://cryptoslate.com/plagiarism-and-wash-trading-issues-forced-nft-marketplace-to-suspend-sales/