FTX Flags Aztec Protocol, Allegedly Freezes Users’ Funds

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Bahamian crypto exchange FTX flags Aztec Network, Aztec Connect, and zk.money. FTX’s actions stem from the widespread sanctions of ethereum based mixing Tornado Cash by the crypto community over accusations of money laundering. 

FTX accused the Aztec protocol and its services of posing a “high risk” following Aztec Network’s CEO Zac Williamson’s tweets criticizing the sanctioning of Tornado Cash

Soon, FTX users took to Twitter to claim that the platform had begun blocking users from making transactions with the funds that had interacted with the Aztec Network, Aztec Connect, or zk.money

In addition, an FTX user stated that the platform had frozen their funds after interacting with Aztec protocol’s services. Similarly, other users note that FTX sent them emails questioning the origin of the funds and the purpose behind the transaction. FTX, however, has neither confirmed nor denied any of these claims.

FTX’s latest move received negative criticism from the crypto community, as crypto aficionados state that Aztec’s zk.money service is a layer two privacy tool that should be treated as a virtual currency mixer like Tornado Cash. 

Others expressed their dissatisfaction with the aggressive blocking of the Aztec protocol by stating that users would have to block every wallet that has ever interacted with a layer two privacy protocol to avoid having their funds frozen.   

Written by
Ayush Pande

Bahamian crypto exchange FTX flags Aztec Network, Aztec Connect, and zk.money. FTX’s actions stem from the widespread sanctions of ethereum based mixing Tornado Cash by the crypto community over accusations of money laundering. 

FTX accused the Aztec protocol and its services of posing a “high risk” following Aztec Network’s CEO Zac Williamson’s tweets criticizing the sanctioning of Tornado Cash

Soon, FTX users took to Twitter to claim that the platform had begun blocking users from making transactions with the funds that had interacted with the Aztec Network, Aztec Connect, or zk.money

In addition, an FTX user stated that the platform had frozen their funds after interacting with Aztec protocol’s services. Similarly, other users note that FTX sent them emails questioning the origin of the funds and the purpose behind the transaction. FTX, however, has neither confirmed nor denied any of these claims.

FTX’s latest move received negative criticism from the crypto community, as crypto aficionados state that Aztec’s zk.money service is a layer two privacy tool that should be treated as a virtual currency mixer like Tornado Cash. 

Others expressed their dissatisfaction with the aggressive blocking of the Aztec protocol by stating that users would have to block every wallet that has ever interacted with a layer two privacy protocol to avoid having their funds frozen.   

Written by
Ayush Pande