Based on reviews on social media, a variety of customers have complained that FTX has blocked a transaction that was related to the Aztec Community’s zkmoney privateness expertise. Following the accusations, FTX CEO Sam Bankman-Fried defined that transactions are monitored for AML compliance nevertheless it “doesn’t imply any accounts had been frozen.”
Journalist Wu Blockchain Says an FTX Person’s Account Was Frozen After the Person Transacted With the Aztec Community’s Privateness Enhancing ZK-Rollups
On August 18, the China-based journalist, Colin Wu ‘Blockchain,’ printed 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 much like Optimism and Arbitrum it makes use of ZK-rollups, however Aztec Community’s zkmoney tech is privateness enhancing. Aztec’s expertise makes use of a zk-SNARK scheme referred to as “Plonk,” a general-purpose zero-knowledge proof mechanism.
So whereas the common Ethereum community payment is 0.0014 ether or $2.29 utilizing right this moment’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. “Based on 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 Business-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 in the longer term, in any other case, it could endanger the FTX account.
FTX CEO Sam Bankman-Fried Responds, Aztec Community Insists ‘Privateness Is Authentic’
Following the tweet, FTX CEO Sam Bankman-Fried responded to Wu Blockchain’s assertion and defined that whereas FTX displays transactions, it doesnt imply the alternate has frozen any accounts. “To be clear — that is getting garbled,” Bankman-Fried stated. “We’re continually monitoring transactions for AML compliance, and do enhanced due diligence on sure transactions, however that doesn’t imply that any accounts had been frozen.” Moreover, the official Aztec Community Twitter web page tweeted in regards to the subject.
“We’re conscious of reviews that FTX is warning customers to not work together with Aztec,” the crew stated. “In consequence, we wish to underscore our present and ongoing risk-reduction framework: 1) Implement sensible deterrents 2) Measure their effectiveness — Privateness is reliable.” Aztec Community continued:
We wish to begin by reiterating our mission — Empowering people with on-chain privateness. Our perception is that privateness is a basic precursor to — Discretion, Safety, [and] Creativity — In different phrases, normalcy. In consequence, our method has at all times been certainly 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, reviews present the decentralized alternate (dex) platform Uniswap has blocked 253 Ethereum-based addresses from the frontend utilizing TRM Labs expertise. 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 reviews that allege FTX froze an account from somebody who used the Aztec Community? Tell us what you consider this topic in the feedback part under.
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