Allegations of Sanctions Violations by Elon Musk’s X Platform Raise Concerns
Edited by: TJVNews.com
Recent allegations have emerged suggesting that X, the social media platform owned by Elon Musk, may be violating U.S. sanctions by accepting payments for subscription accounts from entities barred from doing business in the country, as was recently reported in the New York Times. A report by the Tech Transparency Project has shed light on X’s acceptance of payments from groups including Hezbollah leaders, Houthi groups, and state-run media outlets in Iran and Russia. The report in the NYT said that these payments, offering premium services such as a blue check mark and enhanced promotion by X’s algorithm, have raised concerns regarding compliance with U.S. sanctions regulations.
The Tech Transparency Project’s report has revealed that despite X’s official terms of service forbidding payments from individuals and organizations listed under U.S. sanctions, 28 accounts with the blue check mark were found to have received subscriptions, according to the information provided in the NYT report. This revelation suggests a potential violation of U.S. sanctions regulations, as the U.S. Treasury Department maintains a list of entities subject to sanctions due to involvement in activities detrimental to national security, including terrorism.
In response to the report, X issued a statement asserting their commitment to maintaining a safe and compliant platform. The company stated that it would review the findings and take necessary action. However, neither Elon Musk nor the company responded to requests from the New York Times for further comment. Notably, X removed check marks from several accounts highlighted in the report earlier on the same day.
Since Elon Musk’s acquisition of Twitter in 2022, the platform has undergone significant changes in its operations and policies. These changes include a shift towards subscription-based revenue models, restoration of previously barred accounts, and revisions to the verification process. As per the NYT report, under Musk’s leadership, the traditional verification policy has been replaced by a system where users can purchase badges, with popular paid accounts eligible for a share of ad revenue. Additionally, organizational subscriptions, costing $1,000 per month, offer enhanced perks and a gold check mark.
The circumstances surrounding the alleged sanctions violations remain unclear. With X no longer verifying user identities before granting check marks, it is possible that the accounts in question belong to impersonators, the report added. Additionally, the drastic reduction in X’s staff, with approximately 80% laid off under Musk’s tenure, may have implications for the platform’s ability to enforce regulations effectively.
The Berman amendments, established by congressional legislation, have historically facilitated the free flow of information between the United States and sanctioned countries, shielding internet companies from penalties, as was indicated in the NYT report. Notably, TikTok invoked these amendments in 2020 to challenge attempts by former President Donald Trump to ban the app. However, the applicability of these amendments to financial transactions on social media platforms remains uncertain.
Recent observations highlight instances of individuals and groups under U.S. sanctions utilizing X’s premium subscription services. Hassan Nasrallah, the leader of the notorious Iranian-backed terrorist organization Hezbollah, reportedly began paying for a premium account in November, using it to disseminate news releases and anti-U.S. and anti-Israel content to his substantial follower base, according to the information in the NYT report. Similarly, accounts associated with Harakat Hezbollah al-Nujaba and the Houthi militia have obtained the blue check mark, signaling verification, and have leveraged the platform to advance their respective agendas, the NYT report added.
The introduction of subscription services on X in late 2022 has created opportunities for impersonation and scamming. The platform has struggled to effectively police such activities, leading to instances where impostors impersonate brands or individuals for malicious purposes. Concerns were raised when an account with a gold check mark amassed a significant following while espousing praise for Hitler before its suspension, the NYT report said. Additionally, misinformation spread by verified accounts during the conflict in Gaza has further underscored the platform’s challenges in maintaining integrity.
X’s response to these challenges has been met with internal scrutiny and operational adjustments. The platform initially provided free premium accounts to top advertisers but encountered issues such as hacking and compromise. According to the NYT report, internal messages revealed demands for an audit of accounts with free gold check marks and directives to strip badges from compromised accounts. These incidents highlight the complexities faced by social media platforms in managing premium services while ensuring compliance with legal and regulatory frameworks.
The allegations of sanctions violations by X raise significant concerns about the platform’s compliance with U.S. regulations and its commitment to maintaining a secure environment. As investigations into these allegations continue, stakeholders will closely monitor X’s actions and responses to ensure accountability and transparency in its operations.
