Islamic State’s First NFT – Are NFT Marketplaces Ready for Action?
He allegedly created an Islamic State and tried to sell NFT. This has raised concerns among experts who fear that NFT technology could be used to finance money laundering and terrorist activities.
Islamic State experiments with NFT technology
As reported of Wall Street Journal (WSJ), Alerts have been raised by national security specialists regarding NFTs believed to be being distributed and disseminated by ISIS or the Islamic State. A terrorist organization can use blockchain technology to evade sanctions and generate funds for their terrorist campaigns.
The NFT, titled “IS-NEWS #01,” contained statements praising Afghanistan-based Islamist militants for attacking a Taliban position next to a photograph of the Islamic State symbol.
Raphael Gluck, co-founder of US research firm Jihadoscope, is said to have found the NFT in question on the ISIS social media accounts.
The user reportedly created two more NFTs on August 26. One taught Islamic State fighters how to make explosives, while another condemned smoking.
According to the report, this is the first time a terrorist group has been known to create and distribute NFTs. The case raised concerns that blockchain technology’s immutable assets could facilitate the spread of terrorist propaganda and messaging.
This may indicate that terrorist organizations are experimenting with cutting-edge technology to identify ways to transmit their messages and raise funds.
NFT Marketplaces Take NFT down.
According to reports, the digital token is listed on the NFT marketplace OpenSea. The decentralized exchange quickly removed the listing and terminated the account, citing a “zero-tolerance policy for promoting hate and violence.”
Prior to their download, the three NFTs were reportedly accessible on Rambler and other NFT marketplaces as well. None of the NFTs appear to have been sold.
In theory, NFTs can be used to raise money or to launder money in the marketplace. Extremists can plan a series of sales before moderators have time to react.
If such transactions take place on the blockchain, tracing their origins can be more difficult than through more traditional financial channels.
Despite their removal from public NFT marketplaces, illegal NFTs remain permanently embedded in their respective blockchains.
All that is needed to access the images again, is to know their address, and they will be free to redistribute.
OpenSea is increasing security measures.
OpenSea has recently come under fire over key issues around trust and security. In response to the increasing number of NFT scams, OpenSea has announced the introduction of a new feature that hides suspicious NFT transactions from view on their marketplace.
The measure is implemented to protect users from fraud, and ensures that only legitimate transactions are visible. The NFT marketplace has indicated its desire to invest heavily in improving trust and security, which will prevent theft, IP infringement, as well as increase measurement and moderation and significantly reduce critical response times. – Touch settings.
Concerns about NFTs
Experts believe that NFT technology can be used to finance money laundering and terrorist activities. In February, the U.S. Treasury Department released a report titled “A Study of Money Laundering and Terrorist Financing Facilitation in the Art Trade.”
The study is the first to focus the government’s attention on NFTs in money laundering and terrorist financing.
According to the US Treasury, the study has broad implications for the NFT sector, affecting issuers, sellers and marketplaces, as these entities can act as quasi-critos by determining how NFTs are bought and sold. Exchange, therefore, violates international recommendations and regional criminal compliance regulations.
On the flipside
In recent years, terrorist organizations have come to rely on traditional fundraising methods to use cryptocurrency to fund their activities. Cryptocurrency’s anonymity is an attractive feature for terrorist organizations. However, according to the study, the use of those methods is low.
Why should you pay attention?
NFT technology will experience significant growth in 2021.
More on crypto adoption by the authoritarian regime in North Korea:
North Korea is one of the top 5 crypto crime hotspots in the world
North Korea used millions in stolen crypto to fund its missile programs, according to a UN report.
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