Developer and author of popular NFT tokens suspected of money laundering in Latvia

Latvian developer and artist Ilya Borisov faces up to 12 years in prison after authorities claimed that his € 8.7 million in non-fungible token (NFT) income was money laundering.

On his Art is Crime website, Borisov detailed how the government froze his bank accounts without contacting him about the case.

The developer, who earned millions by publishing 3557 NFTs, noted that the proceedings were initiated in February this year, but he was notified of the decision only on May 9. «This ruling was issued on February 10, and it said that I should receive a copy of it. I received it only three months later,» Borysov said.

Due to the lack of clear cryptocurrency taxation rules, the developer said he contacted the Latvian State Revenue Service (VID) about how to legalize his cryptocurrency income. He paid the taxes after the service advised him to register as a «self-employed person» and pay taxes on the amount withdrawn in euros.

Despite this, the authorities are still investigating Borisov, and his account has been frozen.