OpenSea confirms it is banning users to comply with US sanctions, after some users with Iran-based IP addresses say their accounts and NFTs were deleted

Social media is flooded with reports of users in Venezuela not being able to use MetaMask and Infura, and Iranian users being locked out of OpenSea.

VICE 2022-03-04 Jordan Pearson

Context & Ripple Effects

OpenSea’s action extends a pattern in which hosted online services apply US sanctions rules to Iran-linked access: Slack had previously deactivated accounts tied to Iran without warning. The immediate importance for crypto users is that marketplace access is controlled by a service operator, not solely by possession of a wallet.

OpenSea’s earlier API outage disrupted NFT displays in Twitter and MetaMask, showing how services around NFTs rely on centralized infrastructure even when assets are associated with wallets. The reports involving MetaMask and Infura broaden the access issue beyond a single marketplace.

First-order effects

OpenSea is removing access for users it identifies as subject to US sanctions; Iran-based users reporting deleted accounts and NFTs lose the marketplace’s account-level services immediately.
Users in Venezuela reporting inability to use MetaMask and Infura face separate access disruptions across wallet and infrastructure services, limiting their ability to use the surrounding crypto stack.

Second-order effects

OpenSea’s enforcement makes sanctions screening and location-based access controls an operational issue for NFT buyers and sellers who rely on its marketplace services.
The concurrent reports around MetaMask and Infura make clear that access can be constrained at multiple layers—marketplace, wallet interface, and infrastructure—rather than by a single account provider.

Third-order effects

The episode reinforces a structural divide between crypto assets held in wallets and the centralized services required to discover, display, trade, and manage them.
As sanctioned-jurisdiction enforcement reaches more crypto-facing services, compliance policies are likely to shape which users can access major platforms, widening the sector’s hosted-service sanctions precedent.

The trend: Crypto’s legitimacy gap is increasingly defined by the tension between wallet-held assets and centralized platforms’ obligations to enforce national sanctions rules.

Discussion

@bornosor @bornosor on x
NOT A gm AT ALL Woke up to my @opensea trading account being deactivated/deleted without notice or any explanation, hearing lots of similar reports from other Iranian artists & collectors. What the hell is going on? Is OS straight up purging its users based on their country now?
@district0x @district0x on x
Very disappointing to see.😞 If only there was a completely decentralized NFT marketplace... One that's completely owned by the community... Censorship resistant... Maybe even has dank memes... 🧐 (wait, what?!) . . . . . @MemeFactory0x 👀 https://twitter.com/...
@josephfcox Joseph Cox on x
Ethereum companies are blocking users in certain countries; we found unable to access NFT marketplace OpenSea from Iran https://www.vice.com/...
@malwarejake Jake Williams on x
Yes, because despite all the promises of decentralization: 1. This is certainly not decentralized, OpenSea controls most of the market 2. OpenSea is a company beholden to the laws in the territories that it operates in 3. It has to deal with AML issues and Iran is sanctioned 1/ h…
@decryptmedia @decryptmedia on x
U.S.-based #NFT marketplace @opensea has begun blocking users based in Iran, according to multiple reports from frustrated collectors and creators who recently found themselves unable to access the site. https://decrypt.co/... by @pixiekate13
@bradmillscan Brad Mills on x
Users being purged from OpenSea based on sanction sentiment. JPEGs are not decentralized. web3 = Read. Write. Own (until further notice) Money/Store of Value using bitcoin is the only government-resistant use case for a blockchain. This is not a dunk, prepare for global 6102. htt…
@somospostpc Alex Barredo on x
web3 baby https://twitter.com/...
@infura_io @infura_io on x
In response to the concerns we have been hearing, we want everyone to know that we corrected the problem that so many of you have pointed out. In changing some configurations as a result of the new sanctions directives from the United States and other jurisdictions, we
@infura_io @infura_io on x
mistakenly configured the settings more broadly than they needed to be. This was our oversight, and we are grateful that it was pointed out to us. Once we determined what happened, we were able to fix the problem, and service has been restored.
@lawmaster Larry Cermak on x
If Metamask/Infura is open and willing to block countries like Venezuela by IP addresses, it's only a matter of time until they are forced by regulators to censor individual people's IP addresses. We need alternatives immediately, hoping that Alchemy and others don't do this
@metamask @metamask on x
MetaMask relies on Infura as the default endpoint, but this setting can be modified by users if desired, or in case of any service interruptions. We sincerely apologize for the interruption to those in inadvertently impacted regions. https://metamask.zendesk.com/ ...
@metamask @metamask on x
MetaMask is a client-side wallet that strives to make the blockchain maximally accessible to everyone. Infura had a misconfiguration this morning, but it has been corrected now. https://twitter.com/...
@goluis1_ @goluis1_ on x
@MetaMask Do not tell me that you became Centralized, I have this problem and many people in Venezuela have the same 🆘🇻🇪 https://twitter.com/...
@jacoboracle Jacob King on x
Metamask is now blocking all #Ethereum transactions in Venezuela citing “compliance with laws”. 99% of cryptocurrencies and platforms that call themselves “decentralized” are not. They only say it for marketing purposes. Few understand this.
@syamamishra Syama Mishra on x
It's always funny when crypto folks discover how laws, society and even human things like mistakes affect them. https://twitter.com/...
@exodus_io @exodus_io on x
Media reporting that Metamask is blocking Venezuela and Iran. They blamed a misconfiguration from the Infura toolkit; now fixed. Metamask is decentralized, but seems like Infura “endpoint” is not. Do we need better browser extensions? https://twitter.com/...
@tprstly Theo Priestley on x
Did you really believe that decentralisation around money was going to remain a thing forever? By the end of this decade, crypto will be as regulated as fiat. https://twitter.com/...
@enigmafund @enigmafund on x
Dear friends in #Venezuela wanting to use #Crypto: 1. Get a VPN like @NordVPN or similar 2. Use Metamask or any competitor like @iSafePal or @coin98_wallet Stay safe and good luck out there. https://twitter.com/...
@bitcoinovejknl @bitcoinovejknl on x
Choose wisely your global sound money! https://twitter.com/...
@victor928 @victor928 on x
That's why @AlphaWallet insists on fully open source with MIT, decentralized infrastructure, and community ownership. We want AlphaWallet to be always available for any person any business, and always be neutral. https://twitter.com/...
@destinyspoke Adeola Destiny on x
Metamask is not a safe platform if they can block out an entire country Regulators can easy use this as ammo to control who gets access to what Daily I see the mantra of “decentralization” Absolutely not ok @MetaMask Venezuela is a country that needs MM more than anything https:/…
@infura_io @infura_io on x
We sincerely apologize for the interruption to those in inadvertently impacted regions.
@chrisamccoy @chrisamccoy on x
The Web3 infrastructure layer needs credible governance. Centralization isn't it people. https://twitter.com/...
@dlancashi David Lancashire on x
The issue isn't that Infura controls access to the network: there are alternatives. The issue is that none of those alternatives can “outcompete” free. This is why Infura has essentially ALL the marketshare and everyone else has basically NONE. https://twitter.com/...
@jamesspediacci James Spediacci on x
A day after we find out Consensys sold Infura/MetaMask to JP Morgan, they start blocking countries. Let's get some new alternatives. https://twitter.com/...
@quinnypig Corey Quinn on x
Mentioning that company in a tweet of course means that the spam / bot replies blow the tweet up. Pour one out for the journalists... https://twitter.com/...
@lynaldencontact Lyn Alden on x
It's possible to use the internet without going through major Web2 hubs, but the user sacrifices/misses a lot if they do. So far, it looks like Web3 is going in a similar direction. https://metamask.zendesk.com/ ... https://twitter.com/...
@lawmaster Larry Cermak on x
The source for this information for those asking is a bunch of people based in Venezuela unable to use MM with Infura today and also this support page https://metamask.zendesk.com/ ... https://twitter.com/...
@kalebprime @kalebprime on x
Decentralized, eh? https://twitter.com/...
@antonyslumbers Antony Slumbers on x
And more on Metamask. Personally this doesn't bother me, but it does show the fantasy about decentralisation in Web3. And without decentralisation why are we bothering? https://twitter.com/...
@chrisblec Chris Blec on x
Wallet apps are a user's last line of defense in a wild & dangerous crypto world. This is why we pushed back so hard on AOPP. We want to feel safe. We don't want to see wallet devs capitulating to regulators. @Metamask's new ban on Venezuela users crosses an untenable line.
@brainharrington Brian Harrington on x
Ethereum makes no material improvements on the issues w/ legacy finance https://twitter.com/...
@davidgerard @davidgerard on x
Ethereum is REALLY TRULY DECENTRALISED, HONEST and not a wholly-owned subsidiary of ConSensys - Venezuelan users of crypto wallet MetaMask say they can no longer access it https://www.theblockcrypto.com/ ...
@lawmaster Larry Cermak on x
Just a reminder to use secure VPNs by default when interacting with crypto. Ideally also using a local node with MetaMask or other wallets but not many people will do that obviously. Most importantly let's put pressure on wallets to not do this shit. They should be neutral
@grummz @grummz on x
I guess Metamask isn't as decentralized as people think. https://twitter.com/...
@byzgeneral @byzgeneral on x
Disgraceful. https://twitter.com/...
@gmoneynft @gmoneynft on x
Not a good look. https://twitter.com/...
@ncweaver Nicholas Weaver on x
Web3's claim: “No centralized gatekeepers, enjoy the Unstoppable Censorship Resistant Blockchain POWAH!” Web3's reality: It does not remove any of the gatekeepers and instead ads additional gatekeepers! https://www.theblockcrypto.com/ ...
@darrenlautf @darrenlautf on x
“A valuation by accounting firm PwC dated July 16, 2020, priced ConsenSys AG assets including Infura, MetaMask, Truffle, PegaSys, CoDeFi, as well as ConsenSys subsidiaries in France, the U.K., Ireland, Australia and Hong Kong, at a total valuation of $46.6 million.” Bro wtf

Chronicles