[bduerst]

If you have $200,000 in ETH, you can sell yourself a $200,000 NFT. Externally it looks like some anonymous person gave you $200,000 for an NFT, rather than you just trying to legitimize illegal cash flows.

Or alternatively, you can double your net worth, because you go from having $200,000 ETH to having $400,000 ($200,000 ETH and a $200,000 NFT). This can then be used to fool naive lenders (or buyers) to giving you money at a fraction of the amount the NFT is worth, which is still a net gain for you.

If you're buying NFTs like they're legitimate "art" and not aware that NFTs exist for these purposes, then you shouldn't be playing the NFT game.

[Melatonic]

I think you are getting this wrong

the NFT scam is a tax evasion thing - much like much of fine art.

[esjeon]

Welp, it's basically an unregulated market, so whatever possible is possible. Tax evasion, check. Money laundering check. Ponzi scheme, check.

[bduerst]

Art embezzlement is just an additional way NFTs are used to the ways described above.