Some customers took to Twitter to bemoan what some are calling a seamless assault on privacy in the wake of the U.S. Treasury Dept.’s accelerate in opposition to Tornado Cash.
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FTX has reportedly begun blockading accounts that receive despatched cash thru zk.cash, a non-public layer-2 chain supplied by the Aztec Network on Ethereum. Per Twitter customers, FTX has identified the DApp as a mixer — a service it deems a “excessive-likelihood task” prohibited by the exchange.
Stories of blocked transactions on FTX began performing on Twitter on Thursday, in most cases with commentary about FTX’s motives and allegations that zk.cash is now not any longer a mixer. Twitter customers moreover renowned that blockading transactions connected to the protocol would possibly per chance well point out a ban with a long way-reaching effects, similar to the sanctions imposed by the US Treasury Department on Tornado Cash customers. The U.S. company positioned over 40 USDC and ETH addresses on the Enviornment of job of Foreign Asset Control (OFAC) List of Specially Designated Nationals on Aug. 8.
Just no longer too lengthy ago, FTX iced up a consumer myth who despatched cash to @aztecnetwork ‘s zkmoney. Per FTX, Aztec Connect – Aztec network / zk cash has been identified as a mixing service, which is a excessive-likelihood task prohibited by FTX.
— Wu Blockchain (@WuBlockchain) August 19, 2022
Aztec Network CEO Zac Williamson took to Twitter with a lengthy thread on Monday commenting on the converse surrounding Tornado Cash, days sooner than FTX’s obvious accelerate in opposition to the network. “There could be a effect for law in Web3. It is no longer at the network stage. It is at the application stage,” Williamson wrote, adding:
“The center-broken thing is that we’ve been thru this already with the World Large Web. We don’t arrest internet service suppliers for the tips in their cables. We don’t arrest DNS suppliers for signing illegal internet page visitors.”
In gentle of the TornadoCash ban, I receive some thoughts on the kind ahead for privacy networks that I’d cling to half with you all.
Despite the darkish circumstances of the present, there are grounds to be optimistic about the future for web3.
A immediate on why…
— Zac Williamson (@Zac_Aztec) August 16, 2022
Zk.cash became launched in March 2021. It describes itself because the “non-public DeFi yield aggregator” of the Aztec Network’s Aztec Connect instrument disclose equipment. Aztec Connect, in turn, “works admire a VPN: by the usage of Aztec’s rollup contract as a proxy.” On Thursday, the Aztec Network supplied that Aztec Connect became prepping to receive funding from DEX Balancer Labs.
