The U.S. Treasury Department has released its first NFT risk assessment report, saying that NFTs are vulnerable to theft

The U.S. Treasury Department has recently released its first NFT risk assessment report, which examines the propensity of the NFT field to be abused by illegal actors. The report highlights the numerous risks associated with NFTs, including vulnerability to fraud, scams, copyright and trademark infringement, and money laundering. The assessment found that NFTs are highly susceptible to fraud and scams and are vulnerable to theft. In addition, some NFT companies and platforms lack appropriate controls to mitigate risks to market integrity and combat money laundering, terrorist financing, and sanctions evasion. The assessment found that insufficient cybersecurity protections, challenges associated with copyright and trademark protection, and hype and price volatility of NFTs and NFT platforms may enable criminals to commit fraud and theft related to NFTs and NFT platforms. (thedefiant)