Internet activist group Anonymous is threatening to release a sex tape allegedly featuring Iggy Azalea in response to a feud between the Australian rapper and US star Azealia Banks, and issues surrounding protests in Ferguson, Missouri.

In a series of messages posted on Twitter, the hackers claim the Fancy hitmaker is guilty of "misappropriating black culture, insulting peaceful protesters and making light of Eric Garner's death".

They insists that unless she publicly apologises for comments made about Ferguson protestors, they will "release various snapshots of her face" from the smutty footage.

"We have so much s--- on you, your scandal would be bigger than Bill Cosby's... You are guilty of misappropriating black culture, insulting peaceful protesters, and making light of [police suspect] Eric Garner's death," one tweet read.

Using the twitter handle @TheAnonMessage, Anonymous also set a 48-hour deadline for Azalea to make amends with fellow rapper Azealia Banks, with whom she is embroiled in an ongoing feud over her appropriate response to the killings of two unarmed black men by police.

Their heated exchange on social media, in the wake of police acquittals in the Eric Garner and Michael Brown cases, quickly escalated into a confrontation about hip-hop and race.

"There's an X rated tape of you, we bet you'd certainly don't want public, are we right? @IGGYAZALEA... and this is nothing. Comply or else."

While the @TheAnonMessage account has since been suspended, the hackers made a statement on their back-up account insisting that they would be back.

"It's okay everyone, we'll be back. We just have some stuff to take care of," the message read.

Although Azalea has not commented on the threats, the 24-year-old hip-hop star previously denied the existence of a sex tape featuring her with ex-boyfriend Maurice Williams.

"It is categorically not Iggy in the video in question. She has never been involved in any sexually explicit recordings," a spokesperson for the star said.

Ongoing fued

Banks and Azalea have clashed since 2012 when they both emerged on the music scene.

Their rivalry intensified after Banks accused Azalea of selectively reappropriating black culture and not using her platform to speak out against the police killings.

"Black Culture is cool, but black issues sure aren't huh?... If you're down to ride with us b---- you gotta RIDE ALL THE WAY," she tweeted.

Azalea responded: "Theres more to sparking a change than trolling on social media. World issues shouldn't be used as a poor excuse to promote fan battles."