Is the IDF weaponizing blockchain? Are cartels paying ransomware on the dark web? #hearsay | Opinion

In this week's #hearsay edition, crypto gossip columnist Dorian Batycka delves into a darknet exit scam extortion involving the sale of illegal drugs, an Israel Defense Force-backed blockchain incubation program, and an NFT collector's failed flex due to a larger on-chain loan. Additionally, the article questions the potential weaponization of blockchain technology by the IDF and features a reaction to the collector's flex, highlighting the distinction between crypto-native and traditional collectors.

Incognito Marketplace Extortion Highlights Dark Web Vulnerabilities

In a recent turn of events, Incognito Marketplace, a dark web haven for illicit drug transactions, has become the target of a malicious exit scam and extortion scheme. The site's administrator, known as Pharaoh, sent a chilling message to users, threatening to release a massive database of private messages, transaction information, and order details unless a hefty ransom is paid.

Pharaoh's extortion scheme is particularly insidious as it capitalizes on the vulnerability of dark web vendors, many of whom are connected to powerful drug cartels. The threat of having their sensitive data leaked online puts these individuals in a dangerous position, forcing them to confront the consequences of their illicit activities.

Israel Defense Force's Blockchain Ambitions Raise Concerns

Meanwhile, the Israel Defense Force (IDF) is making strides in exploring the potential of blockchain technology. The Mamram Alumni Association, a group of over 8,000 former members of the IDF's Center of Computing and Information Technology Systems unit, has announced the launch of an incubation program for early-stage blockchain and Web3 startups.

The involvement of IDF alumni in this initiative has raised concerns about the potential weaponization of blockchain. Blockchain's intrinsic suitability for managing large centralized lists and maintaining population control raises legitimate questions about its use in Israel's efforts to annex Palestinian territories. The potential implications of blockchain as a tool of population control are deeply troubling and warrant careful scrutiny.

NFT Collector's Flex Falls Flat

In the world of digital art, a curious incident involving NFT collector Pablo Rodriguez Fraile has unfolded. Fraile boasted about securing the "largest ever loan against a single piece of digital art," using Beeple's "Crypto is Bullshit" as collateral. However, his moment of triumph was short-lived as it was quickly pointed out that the loan was not the largest on-chain loan.

The incident highlights the importance of understanding the nuances of the crypto ecosystem, particularly for non-crypto-native collectors. The distinction between thinking in fiat currency and thinking in crypto is crucial for those navigating the complexities of the digital art market.

Other Notable Happenings in the Cryptosphere

• The rumor mill has been buzzing with speculation about Jeff Bezos's potential involvement in crypto, with reports suggesting a $8.5 billion acquisition of Ethereum (ETH).
• The purchase of an alien CryptoPunk for 4,500 ETH has made waves in the NFT community.

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