Terror groups may turn to NFTs to raise money and spread messages – WSJ

The first known case of a non-fungible token (NFT) created and shared by a “terrorist sympathizer” has come to light, raising concerns that the immutable nature of blockchain technology could aid the spread of terrorist messages and propaganda.

In a Sept. 4 article in The Wall Street Journal (WSJ), intelligence experts said the NFT could be a sign that the Islamic State and other terrorist groups may also use blockchain technology to evade sanctions and raise money for their terror campaigns.

The NFT in question was allegedly discovered by Raphael Gluck, co-founder of US-based research firm Jihadoscope, who found the NFT through pro-ISIS social media accounts.

Named “IS-NEWS #01,” the digital symbol is said to be an image bearing the Islamic State emblem with text praising Afghanistan-based Islamic militants for attacking a Taliban position.

Mario Cosby, a former federal intelligence analyst who specializes in blockchain currencies, said the user created two other NFTs on August 26; one shows an Islamic State fighter teaching students to make explosives and the other condemning cigarettes.

The analysts said this could be a sign that terrorist groups could use the new technology to spread their message and test new funding strategies.

“It’s very much an experiment […] to find ways to make content indestructible,” Gluck said.

The digital token was reportedly listed on NFT marketplace OpenSea, but the company quickly took down the listing and closed the poster account, citing a “zero tolerance policy for incitement to hatred and violence.”

The trio of NFTs were also reportedly present on the NFT marketplace Rarible and several others before they were taken down.

Although none of the NFTs appear to have been traded, Cosby says the existence of the tokens is cause for concern because “it’s as censorship-proof as you can get,” adding:

“There’s really nothing anyone can do to actually remove this NFT.”

Security experts have previously expressed concern about the future potential for terrorists to exploit new technologies and markets, including NFTs, to finance attacks.

In February, the US Treasury Department released a study highlighting the growth of the market for NFTs as a potential problem.

In March, Israeli authorities seized a set of 30 crypto wallets from 12 exchange accounts linked to Hamas, a militant group based in the Gaza Strip.

Related: Terrorists still raise money through crypto, but the impact is limited

Last April, Matthew Levitt, director of the Jeanette and Eli Reinhard Program on Counterterrorism and Intelligence at the Washington Institute for Near East Policy, told Cointelegraph that while crypto has been linked to several terrorist financing cases, “it has not yet become a primary means of terrorist financing.”