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Banning Transactions Linked to the Protocol
The private layer-2 chain zk.money, which is made available via the Aztec Network on Ethereum, has reportedly been blocked by FTX, according to sources. Twitter users claim that FTX has classified the decentralized application as a mixer, a service that the exchange prohibits as it is a high-risk activity.
On Thursday, reports of FTX transactions being denied started to surface on Twitter, along with discussion on the reasons for FTX and claims that zk.money is not a mixer. Twitter users also pointed out that banning transactions linked to the protocol might mean a ban with broad repercussions, such to the penalties Tornado Cash users were subjected to by the US Treasury Department. On August 8, the American organisation updated the OFAC List of Specially Designated Nationals with more than 40 USDC and ETH addresses.
FTX’s Alleged Action Against the Network
A user account that sent money to zkmoney recently had its FTX account frozen. Aztec Connect has reportedly been identified by FTX as a mixing service, which is a high-risk activity that FTX forbids. Aztec Network CEO Zac Williamson published a lengthy thread on Twitter on Monday outlining the facts behind Tornado Cash days before FTX’s purported action against the network. There is opportunity for regulation in Web 3. It is not at the current network level. The application level, according to Williamson.
Williamson also said that they’ve already gone through this with the World Wide Web, which is depressing. They don’t make warrants for internet service providers’ cables’ data. When DNS providers sign traffic that is unlawful, they don’t arrest them. Launched in March 2021, Zk.money Aztec Connect software development kit from the Aztec Network identifies itself as the private DeFi yield aggregator. In contrast, Aztec Connect operates like a VPN, by employing a proxy created by the rollup contract of Aztec. The Aztec Network said on Thursday that DEX Balancer Labs was getting ready to sponsor Aztec Connect.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
