Aave confirms TRM Labs API blocked “dusted” Ethereum wallets

Aave has confirmed that the banned list provided by TRM Labs includes an Ethereum wallet dusted with 0.1 ETH through Tornado Cash. The incorrectly flagged wallet address has now been removed from the “authorized” addresses, allowing you to connect to the Aave frontend again.

The ban issued by Aave only stopped users from interacting with the IPFS-hosted web interface of the Aave protocol. Users can still connect via CLI or fork the front end to connect to hosts in the environment. This wasn’t ideal for those who expected to be able to use a pretty UI, but it meant everyone could access their funds in some way.

CryptoSlate was unable to respond to Aave’s request for comment as the issue occurred over the weekend. However, Aave’s official Twitter account released an announcement of his eight tweets on the matter.

Aave has confirmed that the TRM Labs API is responsible for banning users connecting to Tornado Cash, as reported by CryptoSlate on Saturday. The move to add APIs was said to be “consolidation”. [that] It was important and urgent. “

1/8 The top priority of the Aave team is building a safe and secure system for our users. Since we’ve integrated TRM’s API into the Aave IPFS frontend, some users may be having trouble accessing the Aave app, one of his frontends for the Aave protocol.

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Aave (@AaveAave) August 13, 2022

Aave’s direct response to banning dust attack victims was to ensure they “mitigated” the problem.

“The team has mitigated these issues by addressing this immediately. We will continue to evaluate responsible and reasonable risk mitigation measures given the circumstances.”

In a forward-looking statement, Aave declared:

The Aave team continues to innovate. We encourage our community to stay engaged and actively fight for open and fair finance.

Kudos to Aave for how quickly he was able to respond to innocent addresses. But authorizing an address without knowing its connection to illegal activity sets a potentially dangerous precedent.

CryptoSlate has created an open line of communication with TRM Labs to provide further updates.