Global cryptocurrency exchange FTX freezes user accounts interacting with privacy-focused Aztec network protocol following Tornado Cash sanctions.
According to reports by numerous FTX users, the cryptocurrency exchange advised users against utilizing Aztec Connect, Aztec Network, and zk.money since they are “high-risk” services.
Aztec’s zk.money protocol can be used to privately send and receive funds for direct Ethereum transactions. It employs a shield mechanism akin to a virtual private network to allow users to connect privately to Ethereum’s DeFi ecosystem.
According to FTX, industry-leading third-party transaction monitoring systems ensure users do not connect with high-risk addresses.
It is recommended that customers refrain from using the mixing service in the future, since doing so may jeopardize the FTX account.
This move by FTX comes after the US slapped sanctions on virtual currency mixer Tornado Cash accusing it of helping launder more than $455M for the Lazarus Group, a hacking organization tied to the North Korean government.
Also Read: Why did U.S. OFAC Sanction Tornado Cash?
The backlash by the crypto community was expected as they say that this action by FTX denotes that the exchange doesn’t care about decentralization or privacy but is here only for the money.
