September 04, 2022
Islamic State Turns to NFTs to Spread Terror Message
Source: The Wall Street Journal
Journalist Ian Talley
A simple digital card praising Islamist militants for an attack on a Taliban position in Afghanistan last month is the first known nonfungible token created and disseminated by a terrorist sympathizer, according to former senior U.S. intelligence officials. It is a sign that Islamic State and other terror groups may be preparing to use the emerging financial technology to sidestep Western efforts to eradicate their online fundraising and messaging, they said. The NFT, visible on at least one NFT trading website and titled “IS-NEWS #01,” bears Islamic State’s emblem. It was created by a supporter of the group, likely as an experiment to test a new outreach and funding strategy for ISIS, the former officials said. Regulators and national-security officials have expressed concern about the potential for terrorists to exploit new financial technologies and markets, including NFTs.
“It was only a matter of time,” said Yaya Fanusie, a former economic and counterterrorism analyst at the Central Intelligence Agency.
An NFT is a unit of data stored on a blockchain—a database of transactions organized without the need for a central trusted authority. The technology first emerged as a means of tracking, valuing and trading digital assets, but developers say that it has much broader applications, such as digital concert tickets and branded collectibles like digital trading cards.
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