In response to stories on social media, a lot of customers have complained that FTX has blocked a transaction that was related to the Aztec Community’s zkmoney privateness know-how. Following the accusations, FTX CEO Sam Bankman-Fried defined that transactions are monitored for AML compliance however it “doesn’t imply any accounts have been frozen.”
Journalist Wu Blockchain Says an FTX Consumer’s Account Was Frozen After the Consumer Transacted With the Aztec Community’s Privateness Enhancing ZK-Rollups
On August 18, the China-based journalist, Colin Wu ‘Blockchain,’ revealed a tweet that stated a person who transacted with Aztec Community’s zkmoney tech, had their account frozen. Aztec Community is a privateness and scaling community, and just like Optimism and Arbitrum it makes use of ZK-rollups, however Aztec Community’s zkmoney tech is privateness enhancing. Aztec’s know-how makes use of a zk-SNARK scheme referred to as “Plonk,” a general-purpose zero-knowledge proof mechanism.
So whereas the common Ethereum community price is 0.0014 ether or $2.29 utilizing in the present day’s ETH alternate charges, to ship ether by way of the Aztec Community will price solely $0.40 per switch. “Just lately, FTX froze a person account who despatched cash to [Aztec Network’s] zkmoney,” Wu Blockchain tweeted on Thursday. “In response to FTX, Aztec Join – Aztec community / zk cash has been recognized as a mixing service, which is a high-risk exercise prohibited by FTX.”
The journalist added:
FTX stated Trade-leading third-party transaction monitoring instruments guarantee customers don’t work together with high-risk addresses, it is suggested to not use the blending service sooner or later, in any other case, it might endanger the FTX account.
FTX CEO Sam Bankman-Fried Responds, Aztec Community Insists ‘Privateness Is Respectable’
Following the tweet, FTX CEO Sam Bankman-Fried responded to Wu Blockchain’s assertion and defined that whereas FTX screens transactions, it doesnt imply the alternate has frozen any accounts. “To be clear — that is getting garbled,” Bankman-Fried stated. “We’re continuously monitoring transactions for AML compliance, and do enhanced due diligence on sure transactions, however that doesn’t imply that any accounts have been frozen.” Moreover, the official Aztec Community Twitter web page tweeted concerning the problem.
“We’re conscious of stories that FTX is warning customers to not work together with Aztec,” the workforce stated. “Because of this, we need to underscore our present and ongoing risk-reduction framework: 1) Implement sensible deterrents 2) Measure their effectiveness — Privateness is legit.” Aztec Community continued:
We need to begin by reiterating our mission — Empowering people with on-chain privateness. Our perception is that privateness is a elementary precursor to — Discretion, Safety, [and] Creativity — In different phrases, normalcy. Because of this, our method has at all times been considered one of sensible deterrence: Making certain customers have entry to privateness on-chain whereas deterring money-laundering and illicit exercise.
The Aztec Community information follows the continued complaints about Twister Money being banned by the U.S. authorities. Moreover, stories present the decentralized alternate (dex) platform Uniswap has blocked 253 Ethereum-based addresses from the frontend utilizing TRM Labs know-how. Additional, 12 days in the past, the software program developer Banteg reported that Centre Consortium blacklisted 75,000 USDC tied to the Twister Money pool.
What do you consider the stories that allege FTX froze an account from somebody who used the Aztec Community? Tell us what you consider this topic within the feedback part under.
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