Saturday, October 1, 2022

Uniswap already blocks 250 addresses to be “law-abiding” in the United States.

Over 250 cryptocurrency wallet addresses were blocked on the Uniswap exchange, one of the most widely used in Ethereum, for allegedly being linked to illegal activities. This, as a result of the analysis and monitoring carried out by that company with the help of security firm, TRM Labs.

In a message spread among the Uniswap community on GitHub, Jordan Frankfurt, a software engineer at that exchange, revealed that a A total of 253 addresses were blockedBecause they decided not to “take the risk” from that company, which represents operating with accounts approved by the US government.

“We are residents of the United States. If we offer our services to approved people, we are breaking the law and those involved can go to jail,” Frankfurt said.

Frankfurt reveals that the blockade was carried out over a period of 4 months And when they started, they covered the first counterparts with accepted addresses.

Even then, Now the blockade is against any address that is in the eyes of the US government Or that it is the destination of money from scams, frauds and hacks, as Frankfurt itself said.

According to Frankfurt, Uniswap is “very aware” that its excessive compliance with the US government, through account blocking, May affect “large groups of innocent users”That’s why they say they are “cautious” in proceeding with the ban.

Text about the Uniswap block from Jordan Frankfurt
Uniswap software engineer Jordan Frankfurt reported the crash on the exchange. Source: GitHub.

collateral damage

In a series of tweets that addressed the issue of the Uniswap crash, Bunteig, lead developer at Year Finance, explained that 12% of 253 blocked addresses are from real people or legitimate users “Those who have suffered collateral damage” from this exchange’s policy.

Banteague noted that in order for Uniswap to block or censor an account, that address Must fall into one of seven categories representing “risk factors”, They are child pornography, hacked or stolen funds, known hacker groups, mixers (such as Tornado Cash), sanctions, scams and terrorist financing.

But according to this developer, some of the addresses blocked are reflected in all the risk factors mentioned above. “Which seems like a very unlikely combination of criminal activity”he suggested.

In fact, the expert claimed that he had found the address of the owner, which is commonly used to burn money through an alternate method. “Certainly there is no point in blocking it,” he said, Although it looks like it does, at least in Uniswap’s eyes,

Categories to block addresses in Uniswap
The categories by which Uniswap proceeds to block an address when it is linked. Font: bantegh / twitter,

Ban & Whirlwind Cash: The Originals

As mentioned, One of Uniswap’s engineers admitted that sanctions and state pressure forced the decision. for sensor addresses. This is something that has been reported in Cryptonoticious and whose origin is Tornado Cash, the Ethereum transaction mixer that was approved by the Treasury Department.

Because of this approval, which took place in early August, many of the protocols making life in the decentralized ecosystem began to block receivers of transfers from Tornado Cache, despite the fact that 70% of operations that went through that protocol were legal. are, as per a recent report disclosed.

Thus, Uniswap joins terminals that face the prospect of sanctions, appealing for their own sustenance and bowing to the demands of the United States. This, Despite the fact that this exchange is known among the community as a decentralized platform,

In any case, this is not the first time Uniswap has offered chips in favor of the ban. As Cryptonoticious reported in 2019, this exchange house came to block access to residents of a dozen countries. And recently, it was revealed that this exchange has censored users for “suspicious activities”.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -