FTX blocks Aztec Network's privacy DApp, calling it a 'high-risk' mixer

Some users have taken to Twitter to lament what some call a continued attack on privacy following the department's action of the US Treasury against Silver Tornado.

FTX reportedly started blocking accounts that sent coins through zk.money, a private Layer 2 channel provided by the Aztec network on Ethereum. According to Twitter users, FTX has identified the DApp as a mixer - a service it considers "high-risk activity" prohibited by the exchange.

Reports of blocked transactions on FTX began popping up on Twitter on Thursday, sometimes with comments about FTX's motives and claims that zk.money is not a mixer. Twitter users have also noted that blocking transactions related to the protocol can imply a ban with far-reaching effects, similar to sanctions imposed by the United States Department of Treasury on Tornado Cash users. The US agency placed more than 40 USDC and ETH addresses on the Office of Foreign Asset Control (OFAC) Specially Designated Nationals list on August 8.

Recently, FTX froze a user account that was sending coins to @aztecnetwork's zkmoney. According to FTX, Aztec Connect - Aztec network / zk money has been identified as a mixing service, which is a high-risk activity prohibited by FTX.

Aztec Network CEO Zac Williamson took to Twitter with a lengthy thread on Monday commenting on the situation surrounding Tornado Cash, days before FTX's apparent action against the network. “There is a place for regulation in Web3. It's not at the network level. It's on the application...