After Tornado Cash was blocked, privacy protocols came under scrutiny, interaction with which could cost users account suspension.
Chinese journalist Colin Wu reported that the FTX exchange blocked user accounts for transferring funds to a ZK Money account. Wu tweeted that FTX “identifies Aztec Network as a mixing service” and strongly advises its customers to avoid blocking accounts do not use the services of this service.
Aztec Network representatives said they are aware of ongoing developments and intend to contact FTX, as well as “negotiate with global regulators, centralized exchanges and consumers.” The protocol team also said that it has taken additional measures to prevent money laundering, including slowing down the speed of deposits and withdrawals of funds, and also simplified the identification of addresses at potential risk.
The exchange has yet to issue an official statement on reports of account freezes, but FTX CEO Sam Bankman-Fried responded on Twitter, suggesting the information may have been misrepresented.
“We are constantly reviewing transactions for compliance with AML rules and conducting enhanced due diligence on certain transactions, but this does not mean that any accounts have been frozen,” wrote he.
Yesterday, the US Federal Deposit Insurance Corporation (FDIC) demanded that the FTX.US exchange stop making misleading statements about supposedly insured cryptocurrency products.
Source: Bits
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