US Treasury says NFTs 'highly susceptible' to fraud, but ignored by high-tier criminals

The U.S. Treasury’s assessment concludes NFTs are highly vulnerable to fraud, scams (e.g., rug pulls), and money laundering, enabled by weak cybersecurity and limited customer identification on NFT platforms. While noting little evidence of terrorist or major organized crime financing via NFTs, Treasury recommends improving regulatory awareness, considering NFT-specific rules, and collaborating with industry to strengthen protections; however, it advises NFTs should not be prioritized over higher-risk sectors.