Monday, December 5, 2022
HomeNFTTerror groups shift to emerging technology like NFTs to raise funds

Terror groups shift to emerging technology like NFTs to raise funds

According to a media report, the first terror-based NFT (Non-Fungible Token) has surfaced, underlining the revelation of NFT (Non-Fungible Token) recognizing Islamist militants for the assault on an Afghanistan mosque the previous month.

The NFT with the name ‘IS-NEWS #01’ highlights the image of the Islamic State. The NFT was brought down from Rarible and Opensea, a well-known NFT marketplace, but the NFT is still available on other platforms such as IPFS.

“This incident of terror community reflects the change in their strategy,” said ex-US senior intelligence officials. The senior official believes these terror groups are trying to avoid authorization and restrictions on fundraising activities by utilising technology like NFTs. 

As per researcher Raphael Gluck, this is more likely the terror community’s approach to trying things out rather than a fundraising attempt, considering that it wasn’t listed for purchase. Raphael Gluck further added, “It’s a lot of experiments… to track down ways of making content indestructible.”

The ex-federal intelligence analyst said to an online media reporter that bringing down the NFT would be a challenging task because of its “censorship-proof” nature.

Fear bunches depend largely on publicity to collect funds and help with their tasks, but expanding sanctions have restricted access to such exercises. Security specialists are currently worried about NFTs arising as another way for dread gatherings like the Islamic State to get the message out and gather donations.

The incident has drawn attention from controllers, which isn’t uplifting news for the crypto industry given that it is under heavy investigation following the breakdown of Terra.

This might be the first event including NFTs in terror-based activity, but the utilisation of digital currencies by terror groups has raised concerns in many nations. Recently, Israeli specialists seized 30 crypto-wallets from exchange accounts related to the Palestinian militant group Hamas.

Israeli authorities asserted that the seized accounts were reportedly being utilized by Hamas to finance dread missions against their country.

However, the Coinbase report revealed that transactions-related to terror activity comprise less than 0.5% of all unlawful volume in crypto.

Last year, the Financial Sector Innovation Policy Roundtable held by the U.S. Treasury Department noticed the role of digital currencies as a “device to back psychological warfare.” It begged legislators and controllers across the board to team up on strategies that would restrict the utilization of crypto in terror fundraising and other things.

Before this year, the European Union passed another regulation to reinforce the European system to battle illegal transactions. When it comes to tracking crypto transactions, cryptocurrency transactions come under the same guidelines as traditional cash transfers under the new regulation to avert terrorist funding, tax evasion, etc.

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