FTX blocks Aztec Network privacy DApp, calling it a ‘high risk’ mixer

Aug 20, 2022
FTX blocks Aztec Network privacy DApp, calling it a ‘high risk’ mixer

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FTX has reportedly begun blocking accounts which have despatched cash via zk.cash, a non-public layer-2 chain supplied by the Aztec Community on Ethereum. In keeping with Twitter customers, FTX has recognized the DApp as a mixer — a service it deems a “high-risk exercise” prohibited by the trade.

Experiences of blocked transactions on FTX started showing on Twitter on Thursday, generally with commentary about FTX’s motives and allegations that zk.cash just isn’t a mixer. Twitter customers additionally famous that blocking transactions linked to the protocol might suggest a ban with far-reaching results, much like the sanctions imposed by the US Treasury Division on Twister Money customers. The U.S. company positioned over 40 USDC and ETH addresses on the Workplace of International Asset Management (OFAC) Listing of Specifically Designated Nationals on Aug. 8.

Aztec Community CEO Zac Williamson took to Twitter with a protracted thread on Monday commenting on the state of affairs surrounding Twister Money, days previous to FTX’s obvious motion towards the community. “There’s a place for regulation in Web3. It’s not on the community stage. It’s on the utility stage,” Williamson wrote, including:

“The miserable factor is that we’ve been via this already with the World Huge Internet. We don’t arrest web service suppliers for the information of their cables. We don’t arrest DNS suppliers for signing unlawful site visitors.”

Zk.cash was launched in March 2021. It describes itself because the “non-public DeFi yield aggregator” of the Aztec Community’s Aztec Join software program growth equipment. Aztec Join, in flip, “works like a VPN: by utilizing Aztec’s rollup contract as a proxy.” On Thursday, the Aztec Community introduced that Aztec Join was prepping to receive funding from DEX Balancer Labs.