Aztec responds to claims FTX froze user funds for interacting with the protocol


Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

CryptoSlate reported that FTX had frozen consumer accounts as a result of they interacted with Aztec Community. Aztec has now responded to the claims by reiterating its core values and confirming that it “won’t be passive in stopping illicit conduct.”

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

Additionally documented by Wu Blockchain, the accusations of FTX having their accounts frozen got here from a sequence of tweets from a handful of accounts. The legitimacy of the account suspensions was mentioned in an earlier article right here on CryptoSlate.com.  FTX CEO Sam Bankman-Fried responded however neither confirmed nor denied that any accounts have been frozen.

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

To be clear–that is getting garbled. We’re continually monitoring for AML compliance, and do enhanced due diligence on sure , however that doesn’t imply that any accounts have been frozen. https://t.co/FVOGHUa4TJ

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

— SBF (@SBF_FTX) August 19, 2022

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

Aztec additional commented that it’s engaged on a sequence of enhancements that may “virtually get rid of the flexibility of unhealthy actors to maneuver stolen funds via Aztec.” These embody deposit caps, rate-limiting, pending deposit caps, and modifying the “escape hatch window.”

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

The upgrades will consequence within the following updates to the Aztec Community:

Aztec Responds To Claims FTX Froze User Funds For Interacting With The Protocol

– Sluggish the speed of deposits and withdrawals
– Make it simpler to establish at-risk addresses
– Stop illicit from sidestepping Falafel, the open-source implementation of Aztec’s rollup

Not like different web3 protocols, which have both needed to shut down or abide by U.S. sanctions, Aztec have taken a special strategy. The community argues that it “restricts conduct, somewhat than people.”

Sensible deterrence makes the community illiberal of illegitimate use in a credibly impartial method:

It restricts conduct, somewhat than people.
It’s proactive, somewhat than reactive.
It’s measurable, somewhat than counterfactual.

— Aztec (@aztecnetwork) August 19, 2022

The community declared, “if our community is used to hurt , we’ve failed our mission.” It additionally confirmed “working with companions to establish these utilizing stolen funds and unmask them utilizing publicly out there data *exterior* of the Aztec system.”

At a troubling time for blockchain-based privateness, Aztec ended its Twitter thread with a poignant message,

“If privateness is outlawed, solely outlaws may have privateness.”

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