Aztec Protocol Reacts to FTX Freezing User Accounts

Aztec Protocol Reacts to FTX Freezing User Accounts

Popular privacy-focused community Aztec protocol lastly reacted to stories that the worldwide cryptocurrency alternate FTX has been freezing person accounts interacting with the protocol.

Aztec highlighted their current risk-reduction framework which includes “implementing practical deterrents” and “measuring their effectiveness.”

The privacy-focused protocol will to any extent further guarantee customers have entry to privateness on-chain whereas deterring money-laundering and illicit exercise.

In the close to future, Aztec is aiming to broaden its efforts in system-wide every day asset deposit caps, IP-specific deposit rate-limiting, single-address pending deposit caps, and constraints on the escape hatch window.

These initiatives will gradual the speed of deposits and withdrawals, make it simpler to determine at-risk addresses, and stop illicit customers from sidestepping Falafel, the open-source implementation of Aztec’s rollup.

Aztec believes that these approaches will successfully limit legal actors’ functionality to transfer stolen belongings via Aztec whereas retaining clients’ means to work together with approved Ethereum companies.

“To would-be illicit users of our network, we want to send a clear message. We will not be passive in stopping illicit behavior,” the protocol famous.

Aztec intends to proceed discussions with world regulators, centralized alternate organizations, and clients. The protocol and its companions have contacted FTX to study extra concerning the alternate’s views.

The Aztec protocol acknowledged that they may embody additional particulars and evaluation relating to this example in a weblog put up quickly.

The stories of FTX freezing person accounts interacting with Aztec protocol did come to the eye of FTX CEO Sam Bankman-Fried and he responded on Twitter by saying that “To be clear–this is getting garbled. We are constantly monitoring transactions for AML compliance, and do enhanced due diligence on certain transactions, but that does not mean that any accounts were frozen.”

All these occasions are occurring as a series response to the U.S. OFAC sanctioning Tornado Cash, a well-liked digital forex mixer. Since then corporations are actively making an attempt to keep away from connections with privacy-focused instruments.

Compiled by Coinbold

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