Islamic State Strikes First NFT – Are NFT Marketplaces Ready to Take Action? By DailyCoin
Islamic State Strikes First NFT – Are NFT Marketplaces Ready to Take Action?The Islamic State has allegedly created and attempted to sell its NFT. This has caused concern among experts, who fear that NFT technology could be used for money laundering and the financing of terrorist activities.
The Islamic State is experimenting with NFT technology
As reported by The Wall Street Journal (WSJ), alarms have been raised by national security specialists regarding NFTs, which are believed to be developed and disseminated by an ISIS or Islamic State. Terrorist organizations can use blockchain technology to avoid sanctions and generate funds for their terrorist campaigns.
The NFT, titled “IS-NEWS #01”, contains statements applauding Afghan-based Islamic militants for attacking a Taliban position alongside a photograph of the Islamic State symbol.
Raphael Gluck, co-founder of the American research company Jihadoscope, allegedly located the NFT in question on pro-ISIS social media accounts.
It is claimed that the user created two more NFTs on August 26. One featured an Islamic State fighter instructing children on how to construct explosives, while the other denied smoking.
According to the report, this is the first known case of a terrorist group creating and distributing an NFT. The case has raised concerns that the immutable properties of blockchain technology could make it easier to disseminate terrorist propaganda and messages.
This may indicate that terrorist organizations are experimenting with cutting-edge technology in an attempt to identify new ways to convey their message and raise funds.
NFT Marketplaces Take NFT down
According to reports, the digital token was listed on NFT marketplace OpenSea. The decentralized exchange quickly removed the listing and terminated the account, citing a firm “zero tolerance policy for promoting hatred and violence.”
Before being taken down, the trio of NFTs were reportedly also available on Rarible and other NFT marketplaces. None of the NFTs appear to have been traded.
In theory, NFTs could potentially be used to raise funds or launder money via a marketplace. Extremists can plan a series of sales before moderators even have time to respond.
If such transactions were to take place on the blockchain, tracing their origins could prove more difficult than tracing through more traditional financial channels.
Despite being removed from public NFT markets, the illegal NFTs remain permanently embedded in their respective blockchains.
All that is required to re-access the images is knowledge of their specific addresses and they will be free to redistribute.
OpenSea is increasing its security measures
OpenSea was recently criticized for important concerns around trust and security. In response to the growing number of NFT scams, OpenSea has announced the introduction of a new feature that will automatically hide suspicious NFT transfers on their marketplace.
The measure was implemented to protect users from being defrauded, and ensures that only legitimate transactions are made visible. The NFT marketplace has indicated its intention to make significant investments in a number of key areas to improve both trust and security, including anti-theft prevention, IP infringement, as well as increasing scaling review and moderation, along with reducing critical response times in high-touch settings .
Growing concerns regarding NFTs
Experts believe that NFT technology can be used for money laundering and the financing of terrorist activities. Back in February, the U.S. Treasury Department released a report titled “Study of Facilitation of Money Laundering and Terrorist Financing Through the Art Trade.”
The study was the first to draw serious government attention to NFTs in the context of money laundering and terrorist financing.
According to the US Treasury Department, the study has broad implications for the NFT sector, affecting art creators, sellers and marketplaces, due to the fact that, depending on how these entities buy and sell NFTs, they can act as a quasi-crypto. exchange, thereby violating global recommendations and regional rules for financial crime compliance.
On the other side
In recent years, terrorist organizations have gradually adopted cryptocurrency to finance their operations based on traditional means of raising funds. The anonymity of cryptocurrency is an attractive aspect for terrorist organizations. However, according to the research, the use of these funds is still low.
Why you should care
NFT Technology has experienced an exponential rise in 2021. This cutting-edge technology is a building block for blockchain-based digital culture, as well as the metaverse.
More on crypto’s adoption by the authoritarian regime in North Korea:
North Korea is among the world’s top 5 places for cryptocrime
A UN report finds that North Korea has used millions in stolen crypto to fund its missile programs
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