Reportedly FTX crypto exchange banned a user of Aztec Network backed crypto privacy Defi platform.
FTX is a third-ranked crypto exchange and it is known to provide secure & retail traders favorable trading services. Exchange is fully global but the jurisdiction where the exchange is not allowed to provide services operates via an independent subsidiary.
On 19 August, A person shared his problem with his FTX account and said that he was banned by the exchange. At that time ban reason was almost unconfirmed
But on the same day, Chinese crypto blogger Collin Wu reported that user was banned by the FTX exchange because the exchange believes that Aztec Connect – Aztec network / zk money is risky for the platform because it provides privacy to crypto transactions.
“Recently, FTX froze a user account who sent coins to @aztecnetwork ‘s money. According to FTX, Aztec Connect – Aztec network / zk money has been identified as a mixing service, which is a high-risk activity prohibited by FTX.”
It is also confirmed by Collin that FTX confirmed that leading crypto transactions monitoring tools keep the user’s interaction from third-party platforms and crypto addresses. And also suggested people remain away from such crypto-mixing services.
Reply tweets are showing that the majority of the crypto users are not happy with this decision of FTX exchange because it is a kind of attack on the privacy of those crypto users, who want to remain anonymous to work for genuine crypto activities.
It is interesting to see that action taken by FTX exchange just after a few weeks of the US government agencies’ sanctions on crypto mixing platform Tornado Cash. The majority of the crypto proponents are against the ban of Tornado Cash by US regulatory bodies because people think Tornado Cash is a neutral tool and it all depends upon the users, whether he is a bad actor or good one.