According to CryptoSlate, FTX had frozen user accounts as a result of their interactions with Aztec Network. In response to the accusations, Aztec reiterated its key principles and vowed to “not be passive in combating illicit activities.”
Wu Blockchain further noted the claims that FTX customers had their accounts frozen as a result of a string of tweets from a small number of accounts. An earlier post on CryptoSlate.com covered the legality of the account bans. Sam Bankman-Fried, the CEO of FTX, reacted but did not confirm or deny that any accounts were frozen.
In a subsequent statement, Aztec stated that it is implementing a number of changes that will “practically prevent the potential of criminal actors to transmit stolen assets through Aztec.” These include rate caps, pending deposit caps, deposit caps, and changes to the “escape hatch window.”
Aztec has chosen a different path than other web3 protocols, which have either had to shut down or comply with American sanctions. By restricting behaviour rather than individuals, the network claims, as Cryptoslate noted.
The network announced that it had failed in its objective if “our network is utilised to harm users.” Further confirmation was made that “working with partners to identify those using stolen monies and unmask them using publicly available information *outside* of the Aztec system*” was ongoing.
(With insights from Cryptoslate)
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