FTX users complain about fund freezes after interacting with privacy protocol Aztec Network

FTX allegedly warned users not to interact with risky services after complaints surfaced that the exchange was blocking accounts that interacted with zk money on the Azteca network.

Chinese journalist Colin Wu report On August 19th, the user’s account was frozen for transferring money to a zk money account.

Recently, FTX froze user accounts that sent coins @aztecnetwork Zukumane. According to FTX, Aztec Connect Aztec network/zk money has been identified as a mixing service, which is a high-risk activity prohibited by his FTX.

Wu Blockchain (@WuBlockchain) August 19, 2022

Some users took to Twitter to share their experiences. A Twitter user shared some screenshots on August 14th., Regarding the series of questions FTX Customer Care asked when trying to deposit money into your account.

another user They also complained about withdrawals being prohibited after some funds were frozen.

FTX allegedly said addresses associated with the protocol were “high risk” and banned on the exchange. Users are advised to stop using the mixing service as it may put their account at risk.

Aztec is a privacy protocol, not a mixer

Some users pointed out that Aztec Network is a privacy solution and should not be treated on the same terms as mixing services such as: tornado cache.

I can’t believe this, so anyone who interacts with the privacy chain will be frozen from now on.

You know what else protects your privacy cold coins

What will they do next? Will they start freezing users involved with Mixer?

jaimin.eth | jaimin.sol (@Jaimin___Patel) August 19, 2022

money It is a layer 2 privacy solution built on top of aztec network This allows users to carry out transactions without compromising their privacy. Transaction data can be kept private, but owners can choose what they share and who they want.

Users expressed pessimism that the zk rollup solution built to protect privacy may have been terminated prematurely if freezes against privacy protocols were not checked.

zk rollup is dead

2984 (@ghost_xnft) August 19, 2022

Growing Interest in Privacy Protocols

American sanctions The protests against Tornado Cash and the arrest of its developer in the Netherlands have threatened the future of privacy-focused solutions like Monerao.

Nevertheless, Monero completed its hard fork on August 13th. This upgrade improves network security and privacy features.

Amid growing concerns about the safety of privacy protocol developers, Monero developer Justin Berman reiterated his commitment to continuing to build solutions that give users the privacy they deserve.

i am working @monero It helps you make easy-to-use money without exposing your entire net worth + salary + spending history to the world when you use it.

Totally normal.

I’m not going to be anonymous to do something completely normal.

Justin Berman (@justinberman95) August 15, 2022