NFTs are Non Fungible tokens that are digital assets. They cannot be traded or exchanged for the same amount of money. They reduce the probability of fraud by making buying and selling more efficient. NFTs are a form of digital art that can have real world benefits or just the ownership of that specific piece. Different types of art portrayed on NFTs can determine the value in which the asset is sold to one another and can be up in the millions of dollars.

Money laundering is when the criminal transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source. Thus meaning if someone performs a criminal job for money, you wont need to take out large amounts of cash to make the payment. Instead they would buy a piece of art or can be an NFT for that same amount of money. One person puts up an item that isn’t worth that much money, but is bought for what someone owes the other. Using this method it becomes less suspicious to drop loads of money on a material item.

Yes, people are already doing it. “It could possibly be even easier to move dirty funds around because it is tied to a decentralized currency and…there are no physical artworks to transport or store in off-shore tax haven warehouses.” (Catherine Graffam). Since it is anonymous people can't get caught because it looks like someone is just buying something for a lot of money. Though because it's decentralized there is no proof of someone committing this crime. In the future there will be a way to track purchases back to someone to potentially catch people who launder money with NFTs.