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 line with Twitter customers, FTX has recognized the DApp as a mixer — a service it deems a “high-risk exercise” prohibited by the alternate.
Reviews of blocked transactions on FTX started showing on Twitter on Thursday, typically with commentary about FTX’s motives and allegations that zk.cash isn’t a mixer. Twitter customers additionally famous that blocking transactions related to the protocol might suggest a ban with far-reaching results, just like the sanctions imposed by the USA Treasury Division on Twister Money customers. The U.S. company positioned over 40 USDC and ETH addresses on the Workplace of Overseas Asset Management (OFAC) Listing of Specifically Designated Nationals on Aug. 8.
Just lately, FTX froze a consumer account who despatched cash to @aztecnetwork ‘s zkmoney. In line with FTX, Aztec Join – Aztec community / zk cash has been recognized as a mixing service, which is a high-risk exercise prohibited by FTX.
— Wu Blockchain (@WuBlockchain) August 19, 2022
Aztec Community CEO Zac Williamson took to Twitter with a protracted thread on Monday commenting on the scenario surrounding Twister Money, days previous to FTX’s obvious motion in opposition to the community. “There’s a place for regulation in Web3. It’s not on the community stage. It’s on the software stage,” Williamson wrote, including:
“The miserable factor is that we’ve been via this already with the World Extensive Internet. We don’t arrest web service suppliers for the info of their cables. We don’t arrest DNS suppliers for signing unlawful site visitors.”
In gentle of the TornadoCash ban, I’ve some ideas on the way forward for privateness networks that I wish to share with you all.
Regardless of the darkish circumstances of the current, there are grounds to be optimistic concerning the future for web3.
A brief on why…
— Zac Williamson (@Zac_Aztec) August 16, 2022
Zk.cash was launched in March 2021. It describes itself because the “personal DeFi yield aggregator” of the Aztec Community’s Aztec Join software program improvement package. Aztec Join, in flip, “works like a VPN: through the use of 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.