FTX has reportedly begun blocking accounts which have despatched cash by zk.cash, a personal layer-2 chain offered by the Aztec Community on Ethereum. In response to Twitter customers, FTX has recognized the DApp as a mixer — a service it deems a “high-risk exercise” prohibited by the alternate.
Experiences of blocked transactions on FTX started showing on Twitter on Thursday, generally with commentary about FTX’s motives and allegations that zk.cash will not be a mixer. Twitter customers additionally famous that blocking transactions related to the protocol could suggest a ban with far-reaching results, much like the sanctions imposed by the US Treasury Division on Twister Money customers. The U.S. company positioned over 40 USDC and ETH addresses on the Workplace of International Asset Management (OFAC) Record of Specifically Designated Nationals on Aug. 8.
Lately, FTX froze a person account who despatched cash to @aztecnetwork ‘s zkmoney. In response to 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 state of affairs surrounding Twister Money, days previous to FTX’s obvious motion towards the community. “There’s a place for regulation in Web3. It’s not on the community stage. It’s on the utility stage,” Williamson wrote, including:
“The miserable factor is that we’ve been by this already with the World Vast Internet. We don’t arrest web service suppliers for the information of their cables. We don’t arrest DNS suppliers for signing unlawful site visitors.”
In mild of the TornadoCash ban, I’ve some ideas on the way forward for privateness networks that I want 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 growth 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.