The social media platform owned by Elon Musk, ‘X,’ is being accused of breaching U.S. sanctions by accepting payments for subscription accounts from groups and organizations that are prohibited from doing business in the United States, as per a recent report by the Tech Transparency Project, a nonprofit committed to ensuring accountability among major technology companies. According to the report, X has accepted payments from accounts associated with Hezbollah leaders, Houthi groups, and state-run media outlets in Iran and Russia. These subscriptions, which are priced at $8 monthly, offer several incentives including a blue check mark for users, which was previously limited to verified users such as celebrities, and better promotion through X’s algorithm. Although X’s official terms of service prohibit those on the U.S. Treasury Department’s sanctions list from making payments on the platform, the report found that 28 accounts with the blue check mark violated this rule. Katie Paul, the director of the Tech Transparency Project, remarked, “We were surprised to find that X was providing premium services to a wide range of groups the U.S. has sanctioned for terrorism and other activities that harm its national security. It’s yet another sign that X has lost control of its platform.”
Neither X nor Mr. Musk responded to a request for comment. Mr. Musk has previously stated that he wants X to be a safe space for free speech and that he would only remove illegal content. Since Mr. Musk acquired Twitter in 2022, the company has implemented significant changes in its business model, including an emphasis on subscription services over advertising, the reinstatement of previously barred accounts, and the removal of certain site regulations. Mr. Musk also eliminated the company’s verification policy, introducing a paid system for badges and adding an option for popular paid accounts to receive a share of ad revenue. Subscriptions for organizations cost $1,000 monthly, with additional perks and a gold check mark. (X still identifies official government accounts with a gray check mark.)
It remains unclear how the organizations and individuals cited in the report were able to pay for their premium status on the platform. This is compounded by the fact that X no longer verifies the identities of users before granting check marks, raising the possibility that the accounts brought to light by the Tech Transparency Project could belong to impersonators. X’s former employees, who were laid off to the tune of 80 percent by Mr. Musk, might have contributed to the company’s lack of oversight in this area.
Furthermore, internet companies in the past have relied on Berman amendments in U.S. legislation, which enables the free exchange of information between the U.S. and sanctioned countries without incurring penalties. It is uncertain whether companies can use this argument to justify financial transactions within a social media service. In light of the report, it seems that X is facing challenges in enforcing its policies and preventing violations. The consequences of these actions may lead to further scrutiny from authorities.
