CEO Sam Bankman-Fried Responds To Report That FTX Warns Clients Not To Interact With Aztec Network – Bitcoin News

According to social media reports, some users complained that FTX blocked transactions related to Aztec Network’s zkmoney privacy technology. Following the charges, FTX CEO Sam Bankman-Fried explained that transactions were monitored for anti-money laundering compliance, but that “does not mean that any accounts are frozen.”

Reporter Wu Blockchain Says FTX Users’ Accounts Frozen After Users’ Transactions With Aztec Network’s Privacy-Enhancing ZK-Rollups

On Aug. 18, China-based reporter Colin Wu ‘Blockchain’ tweeted that the account of a user who transacted with Aztec Network’s zkmoney technology had been frozen. Aztec Network is a private and scalable network, similar to Optimism and Arbitrum, it uses ZK-rollups, but Aztec Network’s zkmoney technology can enhance privacy. Aztec’s technology uses a zk-SNARK scheme called “Plonk,” a general-purpose zero-knowledge proof mechanism.

So while the average Ethereum network fee is 0.0014 ETH or $2.29 using today’s ETH exchange rate, sending ETH over the Aztec network costs just $0.40 per transfer. “Recently, FTX froze a user account that sent tokens to it [Aztec Network’s] zkmoney,” Wu Blockchain tweet Thursday. “According to FTX, Aztec Connect – Aztec network / zk money has been identified as a hybrid service, which is a high risk activity prohibited by FTX.”

reporter Add to:

FTX said that industry-leading third-party transaction monitoring tools ensure that users do not interact with high-risk addresses, and it is recommended not to use currency mixing services in the future, otherwise FTX accounts may be compromised.

FTX CEO Sam Bankman-Fried responds, Aztec Network insists ‘privacy is legal’

Following this tweet, FTX CEO Sam Bankman-Fried respond Wu Blockchain’s statement also explained that while FTX monitors transactions, it does not mean that the exchange has frozen any accounts. “To be clear — it’s getting messier,” Bankman-Fried said. “We have been monitoring transactions for anti-money laundering compliance and strengthening due diligence on certain transactions, but this does not mean that any accounts have been frozen.” Also, the Aztec Network’s official Twitter page tweet about this issue.

“We are aware of reports that FTX warned users not to interact with the Aztecs,” the team said. Say“Therefore, we want to highlight our current and ongoing risk reduction framework: 1) Implementing actual deterrence 2) Measuring its effectiveness – privacy is legal.” Aztec Network continue:

We begin by reaffirming our mission – to empower individuals with on-chain privacy. Our belief is that privacy is – discretion, security, [and] Creativity — in other words, the norm. As such, our approach has always been a practical deterrent: ensuring users have access to on-chain privacy while preventing money laundering and illegal activity.

The Aztec Network news comes after ongoing complaints about Tornado Cash being banned by the US government. Additionally, reports show that decentralized exchange (dex) platform Uniswap has blocked 253 Ethereum-based addresses from the front using TRM Labs technology. In addition, 12 days ago, software developer Banteg report The central consortium blacklisted 75,000 USDC associated with the Tornado cash pool.

tags in this story

AML, Aztec Privacy, Aztec Scaling, aztec.network, Colin ‘Wu’ Blockchain, Compliance, Crypto-privacy, freeze, ftx, FTX account, FTX CEO, FTX Exchange, illegal activity, Plonk, privacy, privacy encryption, Sam Bankman- Fried, third-party transactions, Wu Blockchain, ZK rollups, zkmoney tech

What do you think of reports claiming that FTX has frozen the accounts of people using the Aztec network? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.




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