Aztec responds to claims FTX froze user funds for interacting with the protocol

CryptoSlate reported that FTX has frozen user accounts due to their interactions with the Aztec Network.the aztecs now responded We oppose the allegations by reiterating their core values ​​and affirming that they are “not reluctant to stop illegal activity.”

Also, the accusations documented by Wu Blockchain of FTX users whose accounts have been frozen follow a series of Tweet From some accounts. The justification for account suspension has been explained in a previous article on CryptoSlate.com. FTX CEO Sam Bankman-Fried responded, but neither confirmed nor denied that the account had been frozen.

For clarity, this is garbled. We constantly monitor transactions for AML compliance and have increased due diligence on certain transactions, but this does not mean that your account has been frozen. https://t.co/FVOGHUa4TJ

—SBF (@SBF_FTX) August 19, 2022

Aztec also commented that it was working on a series of improvements that would “virtually eliminate the ability of malicious parties to move stolen funds through Aztec.” These include changes to deposit limits, rate limits, pending deposit limits, and ‘escape hatch windows’.

The upgrade brings the following updates to your Aztec network:

– Slow down the speed of deposits and withdrawals
– Facilitates identification of risky addresses
– Prevent unauthorized users from circumventing Falafel, an open-source implementation of Aztec’s rollup

Unlike other web3 protocols that have had to shut down or comply with US sanctions, Aztec has taken a different approach. The network claims it “restricts behavior, not individuals.”

A practical deterrent makes the network intolerant of illicit use in a trust-neutral manner.

Limit actions, not individuals.
It’s proactive, not reactive.
It’s not counterfactual, it’s measurable.

— Aztec (@aztecnetwork) August 19, 2022

The network declared, “We have failed our mission when our network is being used to harm our users.” It also confirmed that it would “work with partners to identify individuals using stolen funds and uncover their identities using publicly available information *external* to the Aztec system.” Did.

At a troubling time for blockchain-based privacy, Aztec ended its Twitter thread with a scathing message.

“If privacy is outlawed, only outlaws will have privacy.”