Reports Say FTX Warns Customers Not to Interact With Aztec Network, CEO Sam Bankman-Fried Responds
According to reviews on social media, quite a few customers have complained that FTX has blocked a transaction that was related to the Aztec Network’s zkmoney privateness expertise. Following the accusations, FTX CEO Sam Bankman-Fried defined that transactions are monitored for AML compliance but it surely “doesn’t imply any accounts had been 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,’ revealed a tweet that stated a person who transacted with Aztec Network’s zkmoney tech, had their account frozen. Aztec Network is a privateness and scaling community, and much like Optimism and Arbitrum it makes use of ZK-rollups, however Aztec Network’s zkmoney tech is privateness enhancing. Aztec’s expertise makes use of a zk-SNARK scheme known as “Plonk,” a general-purpose zero-knowledge proof mechanism.
So whereas the common Ethereum community price is 0.0014 ether or $2.29 utilizing right now’s ETH change charges, to ship ether by way of the Aztec Network will value solely $0.40 per transfer. “Recently, FTX froze a person account who despatched cash to [Aztec Network’s] zkmoney,” Wu Blockchain tweeted on Thursday. “According to FTX, Aztec Connect – 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 Industry-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 could 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 assertion and defined that whereas FTX screens transactions, it doesnt imply the change has frozen any accounts. “To be clear — that is getting garbled,” Bankman-Fried stated. “We are continuously monitoring transactions for AML compliance, and do enhanced due diligence on sure transactions, however that doesn’t imply that any accounts had been frozen.” Additionally, the official Aztec Network Twitter web page tweeted in regards to the challenge.
“We are conscious of reviews that FTX is warning customers to not work together with Aztec,” the crew said. “As a end result, we wish to underscore our present and ongoing risk-reduction framework: 1) Implement sensible deterrents 2) Measure their effectiveness — Privacy is legit.” Aztec Network continued:
We wish to begin by reiterating our mission — Empowering people with on-chain privateness. Our perception is that privateness is a elementary precursor to — Discretion, Security, [and] Creativity — In different phrases, normalcy. As a end result, our method has all the time been one in all sensible deterrence: Ensuring customers have entry to privateness on-chain whereas deterring money-laundering and illicit exercise.
The Aztec Network information follows the ongoing complaints about Tornado Cash being banned by the U.S. authorities. Furthermore, reviews present the decentralized change (dex) platform Uniswap has blocked 253 Ethereum-based addresses from the frontend utilizing TRM Labs expertise. Further, 12 days in the past, the software program developer Banteg reported that Centre Consortium blacklisted 75,000 USDC tied to the Tornado Cash pool.
What do you consider the reviews that allege FTX froze an account from somebody who used the Aztec Network? Let us know what you consider this topic within the feedback part beneath.