AAVE Responses On Blocking Addresses Linked To Tornado Cash

DeFi lending protocol Aave Protocol said the TRM API on its app was responsible for blocking addresses that received ETH from unknown sources through Tornado Cash.

AAVE Complying With OFAC Sanctions

In a Twitter thread on August 14th, the protocol claims that it receives blockchain intelligence from TRM Labs and has integrated TRM API into its frontend to ensure a safe and secure system.

According to the DeFi protocol, “TRM API risk parameters identify all wallets that have interacted with Tornado Cash contracts” and in compliance with OFAC sanctions, block all addresses that interacted post sanction. 

This explains why several addresses entered the blocklist, including the ones “sent “dusted” ETH by third parties interacting with the Tornado Cash contracts without consent”.

The ban issued by Aave only stopped users from interacting with its IPFS-hosted web interface for the Aave protocol. Users could still connect via CLI or forking the front-end to host in their environments. While this was far from ideal for those expecting to be able to use a clean UI, it did mean that everyone still had access to their funds in some way or another.

It added that it has addressed the issue and will “continue to evaluate responsible and reasonable risk mitigation given the circumstances.”

The speed with which Aave can respond to innocent addresses is commendable. However, penalizing addresses without knowledge of their links to illegal activities sets a potentially dangerous precedent.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News

AAVE Responses On Blocking Addresses Linked To Tornado Cash

DeFi lending protocol Aave Protocol said the TRM API on its app was responsible for blocking addresses that received ETH from unknown sources through Tornado Cash.

AAVE Complying With OFAC Sanctions

In a Twitter thread on August 14th, the protocol claims that it receives blockchain intelligence from TRM Labs and has integrated TRM API into its frontend to ensure a safe and secure system.

According to the DeFi protocol, “TRM API risk parameters identify all wallets that have interacted with Tornado Cash contracts” and in compliance with OFAC sanctions, block all addresses that interacted post sanction. 

This explains why several addresses entered the blocklist, including the ones “sent “dusted” ETH by third parties interacting with the Tornado Cash contracts without consent”.

The ban issued by Aave only stopped users from interacting with its IPFS-hosted web interface for the Aave protocol. Users could still connect via CLI or forking the front-end to host in their environments. While this was far from ideal for those expecting to be able to use a clean UI, it did mean that everyone still had access to their funds in some way or another.

It added that it has addressed the issue and will “continue to evaluate responsible and reasonable risk mitigation given the circumstances.”

The speed with which Aave can respond to innocent addresses is commendable. However, penalizing addresses without knowledge of their links to illegal activities sets a potentially dangerous precedent.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News

Visited 139 times, 1 visit(s) today