Prevention is Better Than Cure: A Crime Triangle Analysis of Art NFTs and Financial Crime

Non-fungible tokens (NFTs) bring many opportunities for artists, investors, and creators, but they also have a dark side with significant potential for use in financial crimes. Drawing on relevant caselaw, a systematic review and topic modeling of literature, we map common examples of NFT-related crime, including fraud, money laundering, theft, and market-related offenses. This empirical review lays the groundwork for the core contribution of this article, that is, application of the “crime triangle” to NFT-related crime. Recognizing heterogeneity in NFT-related crime, we detail five scenarios where such crime can occur and analyze these in the context of the crime triangle (inner and outer). This enables us to identify potential gaps and vulnerabilities in current crime prevention strategies. Given challenges in policing cybercrime, and specifically NFT-related crime, we argue that the crime triangle provides a useful heuristic tool for understanding the nature of NFT-related crime and for preventing such crime from happening.