Popular 10KTF NFT Project Checks For Sanctioned Addresses

NFT Contract Consults Chainalysis' On-Chain Sanctions Oracle

By: Jason Levin Loading...

Popular 10KTF NFT Project Checks For Sanctioned Addresses

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

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

Linked to Beeple, the NFT artist who rose to fame last year when his ‘Everydays’ collection sold for $69M at Christie’s, 10KTF has generated over 11,200 ETH ($18M) in secondary trading volume. As of August 19, the 10KTF Combat Crates collection has done 605 ETH in trading volume.


In the recent Combat Crate drop, NFT collector wiltchamberlain discovered that wallets that attempt to open their crates are checked against the Chainalysis on-chain sanctions oracle. This is a method to ascertain if a wallet or contract is on the sanctions list of the U.S. Treasury’s Office of Foreign Assets Control (OFAC).

In this particular case, if the wallet of a Combat Crate buyer is on the OFAC list, then that user was able to mint the crate, but unable to reveal the NFT post-mint. Of course, any affected user would likely be able to circumvent the check by transferring the NFT to another wallet to reveal it. 10KTF is the first known popular NFT collection to use Chainalysis’ sanctions oracle.


“Gross,” Joseph Delong, CTO of NFT lending protocol Astaria and former CTO of SushiSwap, told The Defiant. “Fastest way to kill a business.”

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

Sanctions have been a hot topic of discussion following the Treasury’s move 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.