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Iranians Chase Wealth Dreams, Defy Cryptocurrency Game Warning

June 9, 2024
Reading Time: 9 mins read
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Iranians Chase Wealth Dreams, Defy Cryptocurrency Game Warning


A mysterious on-line recreation promising monetary rewards has swept via Iran, attracting gamers who defy authorities warnings of their pursuit of wealth.

However what’s the recreation and the craze all about? Why is it charming the lots, and what’s fueling the opposition towards it?

What’s Hamster Kombat?

Hamster Kombat, a swiftly increasing “play-to-earn” cell recreation accessible via Telegram, debuted formally on March twenty fifth. Inside a mere 72 days, it had amassed over 116 million users.

This recreation lets gamers oversee a digital cryptocurrency change, incomes in-game cash that may later be transformed into tokens.

The basic gameplay revolves round gamers choosing a cryptocurrency change they want to handle and tapping on the central Hamster icon on the display screen to build up earnings within the type of in-game cash.

As gamers accrue extra cash within the change’s steadiness, its stage will increase, facilitating quicker coin earnings.

What’s the attract?

The customers’ hope is that the sport will be listed on an exchange. Cryptocurrency itemizing, also called crypto coin itemizing, entails introducing a newly launched cryptocurrency to an change platform, thereby making it publicly accessible for buying and selling.

Hamster Kombat gameplay

The sport’s resemblance Notcoin, a well-liked recreation during which some gamers achieved financial positive aspects, has additionally contributed to its enchantment.

Furthermore, it’s important to not overlook the simplicity of the sport and the recognition of Telegram in Iran because the platform itself.

So, what might go mistaken?

The sport might result in identification and knowledge breaches, as specialists have instructed Iran Worldwide.

“Since this recreation is NFT [non-fungible tokens], the ecosystem and platforms surrounding their use can immediately result in consumer monitoring and knowledge assortment in numerous methods,” Sahar Tahvili, an AI researcher and the co-author of “Synthetic Intelligence Strategies for Optimization of the Software program Testing Course of” instructed Iran Worldwide.

“NFT” stands for a digital token of possession normally bought or bought utilizing a cryptocurrency.

“This kind of knowledge is normally used for on-line advertising; nonetheless, it will also be used for identification fraud, phishing, social engineering, and different malicious functions.

Apart from this, additionally they have this technique the place in case you invite a good friend, they are going to reward you, from which they will create a community of individuals, and discern their relationships and habits patterns,” the skilled instructed Iran Worldwide.

“Since folks normally share their true identities and particulars when cash is concerned, their real digital identification may very well be accessible,” she added.

Telegram, based by Pavel and Nikolai Durov, initially gained reputation for its stance against the Kremlin. However there are doubts regarding the place the servers are primarily based and attainable threats as outlined by Forbes.

“Since its early days, Telegram has been notorious for shielding illicit content material from authorities, enjoying the anti-establishment position . This kind of separation can immediately impression knowledge safety, efficiency, and compliance with totally different nations’ laws, relying on the place the internet hosting servers are positioned and the way they’re managed. On this case, the precise recreation recordsdata and consumer knowledge might be saved on RU-CENTER’s infrastructure in Russia,” Tahvili mentioned.

“However, the principle servers of Telegram are additionally outdoors the European Union, which has raised considerations about compliance with the Common Information Safety Regulation (GDPR). Contemplating the massive variety of finish customers on each Telegram messenger and the Hamster recreation, Telegram wants highly effective servers that may deal with and course of this huge quantity of knowledge. Subsequently such enormous servers have to be positioned in sufficiently chilly climates (reminiscent of Siberia) the place the info facilities can use the surface air for cooling,” the skilled instructed Iran Worldwide.

Why is the Islamic Republic warning towards the sport?

“Storing such a lot of private knowledge in a database outdoors of Iran may increase some considerations for the Iranian authorities. The truth is, different nations might probably entry the non-public knowledge of Iranian residents, which may very well be utilized for social engineering and phishing functions,” Tahvili instructed Iran Worldwide.

The sport usually raises important points, reminiscent of knowledge safety and the harvesting of consumer knowledge. Nevertheless, the first concern for Iranian authorities seems to be the excessive stage of public engagement in Tahvili’s opinion.

The Islamic Republic of Iran has restricted entry to numerous messaging apps, changing Telegram with native alternate options, the skilled defined. Nevertheless, home messengers have struggled to rival worldwide messaging apps, largely as a result of their lack of interesting options and fears amongst residents about potential surveillance.

“A filtered model of Telegram has now garnered important consideration in Iran, and the offered web-based recreation Hamster has attracted numerous finish customers. Such on-line engagement with exterior functions, gathering lots of consideration, and having a number of million finish customers raises considerations for the authorities in Iran concerning functions that is likely to be used to avoid censorship and share information,” the researcher mentioned.

Why are residents defying authorities’ stance?

People’ motivations for exposing their knowledge and identification might stem from an absence of belief within the ruling institution, notably in financial misery when the perceived danger appears minimal. Tens of millions of Iranians have more and more grow to be impoverished since 2018 when the US imposed sanctions. They see the slightest probability of incomes cash as a blessing.

Regardless of governmental warnings, the financial incentives provided by the sport typically outweigh cautionary recommendation.

This vulnerability is additional exacerbated amongst these accustomed to residing beneath a dictatorship, who might lack consciousness of their privateness rights, rendering them vulnerable targets for such video games.

There’s a pervasive lack of belief to the extent that if authorities subject warnings towards a selected exercise, the rapid assumption is that they search unique management over it.

Conversely, if authorities help the exercise, there stays suspicion that they’ve ulterior motives involving illicit actions.

What’s the Worldwide stance?

Ukraine has emerged as a distinguished state responding to Hamster Kombat.

The Ukrainian authorities web site, particularly the Middle for Strategic Communications and Data Safety (Spravdi), has warned citizens towards enjoying the sport. 

The priority stems from its Russian area registration beneath the RU-CENTER Group.

“Given the authorized obligations of Russian corporations to retailer consumer knowledge on servers and disclose it to legislation enforcement companies upon request, this case poses a possible menace to Ukrainians,” in accordance with Spravdi’s assertion, printed in Might. “Private knowledge may very well be weak to exploitation for undisclosed functions.”

What’s the Iranian official and media stance?

Sarcastically, the clerical authorities in Iran appears to agree with Ukraine. As the sport’s reputation grew in Iran, the media additionally took notice, and shortly, authorities, from police to hardliner clerics, started to subject warnings.

On Friday, the spokesman for Iran’s Nationwide Middle for Our on-line world issued a warning about Hamster Kombat, stating that money-earning video games have “grow to be an excellent platform for hackers and thieves.”

“Gamers of those video games are suggested to take additional care in defending their info and accounts,” Hossein Deliriyan wrote on X.

Iran’s Cyberpolice acknowledged on Saturday that it’s evaluating threats and damages and can announce the outcomes quickly.

Hamshahri Online, the web site of the Tehran Municipal Newspaper, printed opinions from senior clerics, together with Ayatollah Nasser Makarem Shirazi, a hardliner, holding one of many highest ranks in Iran’s Shiite clerical hierarchy, and Mohammad Mohammadi Golpayegani, Chief of Workers to Supreme Chief Ali Khamenei, concerning the acquisition and sale of digital currencies.

Nearly all of those clerics, apart from Supreme Chief Ali Khamenei himself, explicitly forbid cryptocurrency buying and selling and associated actions, citing that “cryptocurrencies would not have a transparent and exact supply, they usually can endanger the nation’s economic system in addition to circumvent sovereignty and launder cash, they’re subsequently forbidden or illegal.”

Khamenei has solely acknowledged that cryptocurrency buying and selling must be in “compliance with the official legal guidelines of the nation on this matter.”

Is there an official algorithm?

The authorized standing of cryptocurrency in Iran stays a gray space. Whereas there have been preliminary discussions in parliament a few potential ban, it was later clarified that this may solely apply to state establishments, leaving the standing of cryptocurrency for most people unsure.

The judiciary’s website, Mizan, states that “on the whole, it isn’t authorized to commerce cryptocurrencies in Iran, however there isn’t any legislation explicitly stating that buying and selling cryptocurrencies in Iran is illegitimate or thought-about against the law.”

Nevertheless, cryptocurrency mining, which includes verifying transactions and producing new tokens, requires “acquiring permission from the federal government.”

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Nonetheless, in 2022, the state’s intelligence ministry reported blocking over 9,000 accounts of 454 individuals used for unlawful or undeclared foreign money exchanges. Primarily based on the change price throughout that interval, the related trades amounted to 600 trillion rials, or roughly $2 billion.

Does the Islamic Republic make use of a double commonplace in its method to cryptocurrency?

Consultants assert that the Iranian authorities has a self-inflicted “muddled relationship with crypto-currencies,” which facilitates evading sanctions by the federal government whereas additionally enabling illicit actions.

Based on reviews in Iranian media, important cryptocurrency mining operations are carried out by influential or well-connected networks, together with sure Chinese language corporations leveraging cheap and sponsored electrical energy in mining amenities established inside Iran. Such actions might solely have been licensed by Iran’s intelligence providers and the Revolutionary Guard.

In April, the US Treasury Department urged Congress to pass legislation empowering the division to intervene in cryptocurrency-based terrorist financing and sanctions evasion strategies. Throughout a Senate listening to session, it was disclosed that the Islamic Revolutionary Guards (IRGC) had utilized cryptocurrency for funding sure entities.

In 2022, it was revealed that cryptocurrency exchange giant Binance processed Iranian transactions totaling $8 billion since 2018, regardless of US sanctions geared toward isolating Iran from the worldwide monetary system.



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