The FTX exchange has suspended the account of a user sending money to the Aztec Network platform, which uses zkSNARKs technology to increase the privacy of Ethereum transactions. This was reported by journalist Colin Wu.

Recently, FTX froze a user account sending money @aztecnetwork zkmoney. According to FTX, Aztec Connect – Aztec network/zk money has been identified as a mixing service, a high-risk activity prohibited by FTX.

— Wu Blockchain (@WuBlockchain) 19 August 2022

According to Wu, FTX has identified the Aztec Connect network as a high-risk mixing service that is prohibited by the trading platform’s rules.

FTX said its industry-leading third-party transaction monitoring tools ensure users don’t interact with high-risk addresses.

Wu added that the exchange advises clients not to use cryptocurrency mixers in the future to avoid risking their accounts.

In 2020, London-based startup Aztec introduced the second version of the platform based on the ZK-Rollups second layer scaling solution. The use of zkSNARK’s zero-knowledge proofs makes it possible to aggregate transactions, increasing throughput up to 300 TPS.

zkSNARK also hides sender, recipient and amount details, making transactions private.

Recall that on August 8, the US Treasury sanctioned the popular Ethereum mixer Tornado Cash. Authorities have accused the service of facilitating the laundering of more than $7 billion in cryptocurrencies, including funds from North Korean hackers.

This has caused a wave of tightening of compliance measures in the industry. Circle has blacklisted the USDC addresses of 38 Tornado Cash wallets. DEX dYdX and the Oasis DeFi platform have started blocking accounts of users who have previously interacted with the mixing service.

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