{"id":256461,"date":"2022-08-20T01:32:32","date_gmt":"2022-08-20T00:32:32","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=256461"},"modified":"2022-08-21T15:46:54","modified_gmt":"2022-08-21T14:46:54","slug":"aztec-responds-to-claims-ftx-froze-user-funds-for-interacting-with-the-protocol","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/aztec-responds-to-claims-ftx-froze-user-funds-for-interacting-with-the-protocol\/","title":{"rendered":"Aztec responds to claims FTX froze user funds for interacting with the protocol"},"content":{"rendered":"<p>CryptoSlate <a href=\"https:\/\/cryptoslate.com\/ftx-users-complain-about-fund-freezes-after-interacting-with-privacy-protocol-aztec-network\/\">reported<\/a> that FTX had frozen user accounts because they interacted with Aztec Network. Aztec has now <a href=\"https:\/\/twitter.com\/aztecnetwork\/status\/1560710567249096704?s=21&t=izqSNmLj6M4na-m0mcZk8w\">responded<\/a> to the claims by reiterating its core values and confirming that it &#8220;will not be passive in stopping illicit behavior.&#8221;<\/p>\n<p>Also documented by Wu Blockchain, the accusations of FTX users having their accounts frozen came from a series of <a href=\"https:\/\/twitter.com\/mitzapizza\/status\/1559823182596837376\">tweets<\/a> from a handful of accounts. The legitimacy of the account suspensions was discussed in an <a href=\"https:\/\/cryptoslate.com\/ftx-users-complain-about-fund-freezes-after-interacting-with-privacy-protocol-aztec-network\/\">earlier article<\/a> here on CryptoSlate.com.\u00a0 FTX CEO Sam Bankman-Fried responded but neither confirmed nor denied that any accounts were frozen.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">To be clear&#8211;this is getting garbled.  We are constantly monitoring transactions for AML compliance, and do enhanced due diligence on certain transactions, but that does not mean that any accounts were frozen. <a href=\"https:\/\/t.co\/FVOGHUa4TJ\">https:\/\/t.co\/FVOGHUa4TJ<\/a><\/p>\n<p>&mdash; SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1560721008956690432?ref_src=twsrc%5Etfw\">August 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Aztec further commented that it is working on a series of improvements that will &#8220;practically eliminate the ability of bad actors to move stolen funds through Aztec.&#8221; These include deposit caps, rate-limiting, pending deposit caps, and modifying the &#8220;escape hatch window.&#8221;<\/p>\n<p>The upgrades will result in the following updates to the Aztec Network:<\/p>\n<blockquote><p>&#8211; Slow the rate of deposits and withdrawals<br \/>\n&#8211; Make it easier to identify at-risk addresses<br \/>\n&#8211; Prevent illicit users from sidestepping Falafel, the open-source implementation of Aztec's rollup<\/p><\/blockquote>\n<p>Unlike other web3 protocols, which have either had to <a href=\"https:\/\/cryptoslate.com\/tornado-cash-contributor-reveals-dao-shut-down-as-it-cant-fight-the-us-need-to-keep-contributors-safe\/\">close down<\/a> or <a href=\"https:\/\/cryptoslate.com\/aave-confirms-trm-labs-api-blocked-dusted-ethereum-wallets-access-restored\/\">abide<\/a> by U.S. sanctions, Aztec have taken a different approach. The network argues that it &#8220;restricts behavior, rather than individuals.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Practical deterrence makes the network intolerant of illegitimate use in a credibly neutral way:<\/p>\n<p>It restricts behavior, rather than individuals.<br \/>It is proactive, rather than reactive.<br \/>It is measurable, rather than counterfactual.<\/p>\n<p>&mdash; Aztec (@aztecnetwork) <a href=\"https:\/\/twitter.com\/aztecnetwork\/status\/1560710585913749505?ref_src=twsrc%5Etfw\">August 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The network declared, &#8220;if our network is used to harm users, we've failed our mission.&#8221; It also confirmed &#8220;working with partners to identify those using stolen funds and unmask them using publicly available information *outside* of the Aztec system.&#8221;<\/p>\n<p>At a troubling time for blockchain-based privacy, Aztec ended its Twitter thread with a poignant message,<\/p>\n<blockquote><p>&#8220;If privacy is outlawed, only outlaws will have privacy.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>CryptoSlate reported that FTX had frozen user accounts because they interacted with Aztec Network. Aztec has now responded to the claims by reiterating its core values and confirming that it &#8220;will not be passive in stopping illicit behavior.&#8221; Also documented by Wu Blockchain, the accusations of FTX users having their accounts frozen came from a [&hellip;]<\/p>\n","protected":false},"author":1264,"featured_media":256530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77974,46940,39,61045,77252],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Aztec responds to claims FTX froze user funds for interacting with the protocol<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/aztec-responds-to-claims-ftx-froze-user-funds-for-interacting-with-the-protocol\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Aztec responds to claims FTX froze user funds for interacting with the protocol\" \/>\n<meta property=\"og:description\" content=\"CryptoSlate reported that FTX had frozen user accounts because they interacted with Aztec Network. Aztec has now responded to the claims by reiterating its core values and confirming that it &#8220;will not be passive in stopping illicit behavior.&#8221; Also documented by Wu Blockchain, the accusations of FTX users having their accounts frozen came from a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/aztec-responds-to-claims-ftx-froze-user-funds-for-interacting-with-the-protocol\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-20T00:32:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-21T14:46:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/aztec-protocol-ftx.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" 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