2 years ago
According to reports connected societal media, a fig of users person complained that FTX has blocked a transaction that was associated with the Aztec Network’s zkmoney privateness technology. Following the accusations, FTX CEO Sam Bankman-Fried explained that transactions are monitored for AML compliance but it “does not mean immoderate accounts were frozen.”
Journalist Wu Blockchain Says an FTX User’s Account Was Frozen After the User Transacted With the Aztec Network’s Privacy Enhancing ZK-Rollups
On August 18, the China-based journalist, Colin Wu ‘Blockchain,’ published a tweet that said a idiosyncratic who transacted with Aztec Network’s zkmoney tech, had their relationship frozen. Aztec Network is simply a privateness and scaling network, and akin to Optimism and Arbitrum it uses ZK-rollups, but Aztec Network’s zkmoney tech is privateness enhancing. Aztec’s exertion uses a zk-SNARK strategy called “Plonk,” a general-purpose zero-knowledge impervious mechanism.
So portion the mean Ethereum web interest is 0.0014 ether oregon $2.29 utilizing today’s ETH speech rates, to nonstop ether via the Aztec Network volition outgo lone $0.40 per transfer. “Recently, FTX froze a idiosyncratic relationship who sent coins to [Aztec Network’s] zkmoney,” Wu Blockchain tweeted connected Thursday. “According to FTX, Aztec Connect – Aztec web / zk wealth has been identified arsenic a mixing service, which is simply a high-risk enactment prohibited by FTX.”
The writer added:
FTX said Industry-leading third-party transaction monitoring tools guarantee users bash not interact with high-risk addresses, it is recommended not to usage the mixing work successful the future, otherwise, it whitethorn endanger the FTX account.
FTX CEO Sam Bankman-Fried Responds, Aztec Network Insists ‘Privacy Is Legitimate’
Following the tweet, FTX CEO Sam Bankman-Fried responded to Wu Blockchain’s connection and explained that portion FTX monitors transactions, it doesnt mean the speech has frozen immoderate accounts. “To beryllium wide — this is getting garbled,” Bankman-Fried said. “We are perpetually monitoring transactions for AML compliance, and bash enhanced owed diligence connected definite transactions, but that does not mean that immoderate accounts were frozen.” Additionally, the authoritative Aztec Network Twitter leafage tweeted astir the issue.
“We are alert of reports that FTX is informing users not to interact with Aztec,” the squad said. “As a result, we privation to underscore our existent and ongoing risk-reduction framework: 1) Implement applicable deterrents 2) Measure their effectiveness — Privacy is legitimate.” Aztec Network continued:
We privation to commencement by reiterating our ngo — Empowering individuals with on-chain privacy. Our content is that privateness is simply a cardinal precursor to — Discretion, Security, [and] Creativity — In different words, normalcy. As a result, our attack has ever been 1 of applicable deterrence: Ensuring users person entree to privateness on-chain portion deterring money-laundering and illicit activity.
The Aztec Network quality follows the ongoing complaints astir Tornado Cash being banned by the U.S. government. Furthermore, reports amusement the decentralized speech (dex) level Uniswap has blocked 253 Ethereum-based addresses from the frontend utilizing TRM Labs technology. Further, 12 days ago, the bundle developer Banteg reported that Centre Consortium blacklisted 75,000 USDC tied to the Tornado Cash pool.
What bash you deliberation astir the reports that allege FTX froze an relationship from idiosyncratic who utilized the Aztec Network? Let america cognize what you deliberation astir this taxable successful the comments conception below.
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