According to a recently published report, decentralized exchange (dex) Uniswap has blocked around 253 cryptocurrency addresses allegedly linked to crimes or government sanctions. The information was discovered by software developer Banteg, who analyzed and saved shared logs on Uniswap servers.
30 of 253 blocked addresses are ENS domains, Uniswap labels 7 risk factor categories
On August 19, software developer and Yearn Finance contributor Banteg published a twitter thread Claims that dex Uniswap blocked 253 encrypted addresses. “Uniswap offers an extraordinary level of transparency,” Banteg said of the “front-end review through TRM Labs.” Uniswap partnered with TRM Labs in mid-April, which blacklisted crypto addresses that could be linked to sanctions and crypto crimes.
the same month, Report Seems to indicate some innocent Uniswap users pretentious Front-end gated by TRM Labs. At the time, no one knew exactly how many crypto addresses were blacklisted by Uniswap’s TRM Labs gated frontend.bantegger says yes 253 addresses 30 addresses are ENS domains. The developers also noted that there are seven different types of risk factor categories and two risk levels.
“Ownership and counterparty as ‘bad’ addresses are checked and can lead to blocking,” Banteg wrote. According to Banteg, the data “is not intended to be made public,” but the developer noted that people can still “exclusively view the first time.” [TRM Labs] Leak, courtesy of Uniswap. “
Smart contracts and code are Defi, not the web platform that hosts them
The news follows the recent US government bans Tornado Cash, an Ethereum hybrid protocol utilizing Coinjoin and ZKsnark technologies.After Tornado Cash was banned, an open source developer was arrested arrestedGithub code is eraseTornado Cash Github codebase contributors are suspended, the project’s Discord server is suspended deleted.
However, Coin Center, a nonprofit focused on policy issues facing crypto assets, believes that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is “overstepping its authority.” Coin Center is studying the legality of the Tornado Cash ban and plans to “engage” with OFAC to discuss the matter.
While Uniswap has been updating its TRM Labs gated frontend, there may be more crypto companies and decentralized finance (defi) protocols following the same measure. For example, on August 8, Banteg disclose Center Consortium, a stablecoin issuer run by Circle Financial and Coinbase Global, has blacklisted 75,000 USDC belonging to Tornado Cash users.
“I think this is the first case of freezing pools rather than individual accounts,” Banteger said at the time.
The issues surrounding Tornado Cash and precautions taken by defi teams like Uniswap have exposed potential weaknesses in so-called “decentralized finance” protocols, and whether they are truly decentralized.
Even before Tornado Cash was banned by the US government, Tornado Cash developers used the Chainalysis oracle contract to blacklist OFAC-listed Ethereum addresses. Additionally, in July 2021, users criticized Uniswap for blocking more than 100 tokens from the main interface.
In both cases, crypto users discussed how they simply Leverage Tornado Cash code or Uniswap smart contracts and mirror site Bypass these types of restrictions. In fact, Uniswap is a US registered company and its front end or website is owned by a US entity. Over time, one might want to clarify that Defi portals are not decentralized, the only things that can be classified as such are smart contracts and code.
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