FTX has reportedly begun blocking accounts that have sent coins through zk.money, a private layer-2 chain provided by the Aztec Network on Ethereum. According to Twitter (NYSE:TWTR) users, FTX has identified the DApp as a mixer — a service it deems a “high-risk activity” prohibited by the exchange.
Reports of blocked transactions on FTX began appearing on Twitter on Thursday, sometimes with commentary about FTX’s motives and allegations that zk.money is not a mixer. Twitter users also noted that blocking transactions connected to the protocol may imply a ban with far-reaching effects, similar to the sanctions imposed by the United States Treasury Department on Tornado Cash users. The U.S. agency placed over 40 USDC and ETH addresses on the Office of Foreign Asset Control (OFAC) List of Specially Designated Nationals on Aug. 8.
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