FTX has reportedly started restricting accounts from which the coins have been sent through the utilization of zk.money (an Ethereum-based Aztec Network’s private chain that operates on layer-2). As per the Twitter consumers, the DApp has been detected by FTX to be a mixer and it considers this service to be highly risky and thus prohibits it.
FTX Restricts Aztec Network’s Privacy DApp, Citing High Risk
On Thursday, reports regarding transactions’ blockage began surfacing on Twitter. The Twitter customers additionally mentioned that the restriction over the transactions associated with the protocol may infer a prohibition with grave impact.
This would be like the sanctions enforced on the consumers of Tornado Cash by the United States Treasury Department. On 8th August, more than 40 ETH and USDC addresses have been recorded by the U.S. agency on the Office of Foreign Asset Control’s (OFAC) List of Specially Designated Nationals.
On Monday, Zac Williamson, the CEO of Aztec Network, posted a thread on his official Twitter account noting giving his remarks on the situation dealing with Tornado Cash, days ahead of the apparent action of FTX confronting the network. He noted that the world of Web3 had some room for regulation. He added that the disheartening thing is that this has already been experienced by them in the case of the World Wide Web.
Aztec CEO Still Optimistic about Web3’s Future
He moved on to say that they do not capture the providers of interest service over the data existing in the cables possessed by them. He also asserted that they do not catch the DNS providers when they sign prohibited traffic.
In his words, keeping in view the Ban imposed on Tornado Cash, he had some consideration about the privacy network and intended to share them. The CEO revealed that notwithstanding the currently prevailing conditions, there are some positive signs also regarding the Web3 world.
Zk.money was introduced in March previous year. It mentions itself to be a private yield aggregator based on decentralized finance of the Aztec Connect (the software development kit of Aztec Network). The function of Aztec Connect is that of a VPN. The consumer utilizes the rollup contract of Aztec just like a proxy. It was declared by Aztec Connect on Thursday that the platform was making efforts to get funding from DEX Balancer Labs.