Well, at its simplest, an NFT, or Non-Fungible Token, is a unique piece of data stored on a digital list of records called a blockchain. One of the most common forms of NFTs is images, people buying and selling digital art like trading cards is incredibly common in the NFT scene, and like anything that's one of a kind, these NFTs can potentially sell for hundreds of thousands of dollars.
However, much like the real art world, NFTs have the potential to be used to scam people and launder money. One way this could be done is by Person A making their own NFT, putting all their money into etheruem (the cryptocurrency used to trade NFTs), and buying the NFT from themselves for an extreme price, say $10,000, creating a fake high value for the NFT. Person A then sells the NFT to Person B for $5,000, making Person B think they are getting it for a very good price. Person A has now made $5,000 in profits, and Person B is now $5,000 poorer, and owning something that, until Person A sold it to themselves, was essentially worthless.
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