
The finding exposes X to potential sanctions‑violation investigations and reputational damage, highlighting the challenges tech firms face when monetizing services for sanctioned entities. It also underscores the broader regulatory risk of linking verification symbols to paid tiers in geopolitically sensitive markets.
X’s shift from a public‑interest verification badge to a paid‑subscription indicator has fundamentally altered how credibility is displayed on the platform. Since Musk’s 2022 $44 billion acquisition, the blue checkmark has become a revenue stream, rewarding users who subscribe to X Premium. This model, while lucrative, blurs the line between verification and commercial status, making it harder for observers to distinguish authentic public figures from paying entities. The recent discovery that Iranian officials under OFAC sanctions possess these badges illustrates how the policy can inadvertently facilitate sanctioned actors’ access to premium features.
U.S. sanctions law permits technology companies to provide Iranian users with free, publicly available services, but explicitly bars monetized offerings. By charging sanctioned officials for Premium subscriptions, X may have crossed that legal boundary, exposing the company to civil penalties and enforcement actions from the Treasury’s Office of Foreign Assets Control. The fine line between permissible free access and prohibited paid services is increasingly scrutinized as governments tighten digital‑economy oversight. Companies must therefore implement robust compliance frameworks, including real‑time sanctions screening and transaction monitoring, to avoid inadvertent revenue from prohibited parties.
The episode also fuels a broader debate about the responsibilities of social‑media platforms in geopolitically volatile regions. As verification symbols become commodified, the risk of legitimizing state‑aligned narratives grows, potentially amplifying disinformation. Regulators may push for clearer separation between verification and paid tiers, or even re‑introduce a neutral verification system. For X, navigating this landscape will require balancing revenue goals with compliance, transparency, and the preservation of platform integrity, especially as investors and policymakers demand higher standards of corporate governance in the digital sphere.
Image: A digital collage showing the Iranian flag on one side, an eerie green/orange Elon Musk in the middle, and a stylized red X on the other · Photo credit: Elon Musk. Photos: Getty Images
Elon Musk’s X appears to have provided several Iranian government officials and state‑controlled media outlets—who are under U.S. sanctions—with Premium subscriptions to its social‑media platform, according to a report by the Tech Transparency Project (TTP) and reporting by Wired.
When the Iranian government began cracking down on protests last month, killing thousands, Musk decried the administration on X and provided its citizens with free access to his satellite service, Starlink, during a government‑imposed internet blackout.
At the same time, X may have been receiving subscription revenue from the individuals leading that deadly charge as well as the news outlets amplifying their messages, according to the TTP report.
“As the Iran protests unfolded, TTP identified more than two dozen X Premium accounts for Iranian government officials and state‑controlled media outlets that are either directly sanctioned by the U.S. or are part of the Iranian government,” the report says. “All of the accounts had blue checkmarks, which X reserves for paid premium subscribers.”
X updated its blue‑checkmark policy after Musk bought the platform for $44 billion in 2022. In the past, the platform distributed checkmarks to verified accounts operated by public figures. X now uses blue checkmarks to signify which accounts have active Premium subscriptions instead, which range in cost from $3 to $40 per month, according to the company’s help center.
The list of Iranian officials TTP suspects were paying for Premium X accounts includes, among others, Gholam‑Hossein Mohseni‑Eje’i (Iran’s chief justice), Ali Larijani (secretary of Iran’s Supreme National Security Council), and Ali Akbar Velayati (Iran’s former foreign minister).
Mohseni‑Eje’i, Larijani, and Velayati are all currently under sanctions by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), per Wired. While the U.S. allows tech companies to provide Iranian individuals with access to their platforms regardless of sanctions, that exemption only applies to services that “are ‘publicly available’ and ‘at no cost,’” according to Wired.
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