Home Ethereum Popular 10KTF NFT Project Verifies Sanctioned Addresses

Popular 10KTF NFT Project Verifies Sanctioned Addresses

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Popular 10KTF NFT Project Verifies Sanctioned Addresses

NFT Contract Consults Oracle on Chainalysis On-Chain Sanctions

10KTF’s recent Combat Crate NFT drop contained a little twist that no one expected.

Based around a fictional artist named Wagmi-san, 10KTF allows holders of various popular NFTs like Bored Apes, Cryptopunks, and Pudgy Penguins to create digital clothing for their avatars.

Linked to Beeplethe NFT artist who shot to fame last year with his “Everydays” collection sold for $69 million at Christie’s, 10KTF generated over 11,200 ETH ($18 million) in secondary trading volume. Since August 19, the 10KTF Combat Crates collection has made 605 ETH in trading volume.

In the recent Combat Crate drop, the NFT Collector wilchamberlain discovered that wallets that attempt to open their cash registers are verified against Chainalysis chain sanctions oracle. This is a method of checking whether a portfolio or contract is on the United States Treasury’s Office of Foreign Assets Control (OFAC) sanctions list.

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In this particular case, if a fight crate buyer’s wallet is on the OFAC list, that user was able to hit the crate, but could not reveal the NFT after the minting. Of course, any affected user could probably bypass the verification by transferring the NFT to another wallet to reveal it. 10KTF is the first known popular NFT collection to use the Chainalysis Sanctions Oracle.

“Raw”

“Raw,” Joseph Delong, CTO of NFT Astoria lending protocol and former CTO of SushiSwap, told The Defiant. “The fastest way to kill a business.”

“I can see this sort of thing becoming more prevalent,” Messari analyst Dustin Teander told The Defiant. “Particularly for a doxxed American team.”

Sanctions have been a hot topic of discussion after the Treasury’s decision to sanction crypto mixer Tornado Cash on money laundering charges. There have also been reports that crypto exchange FTX has warned users not to interact with Aztec, a privacy protocol that uses zero-knowledge proofs.

The 10KTF team did not respond to The Defiant’s request for comment.

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