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Aave Responds to Blocking Addresses Over Tornado Cash Clampdown

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.

The post Aave Responds to Blocking Addresses Over Tornado Cash Clampdown appeared first on BeInCrypto.

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.

In a Twitter thread on Saturday, 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.”

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

Additionally, the protocol reiterated that it remains decentralized and governed by a DAO, urging its “community to remain engaged and actively fight for open and fair finance.”

Justin Sun Regains Access to Aave

Meanwhile, Justin Sun, whose Aave account was one of those blocked for receiving $0.1 ETH through Tornado Cash, has confirmed that the account is active again.

Justin Sun had earlier revealed that he was unable to interact with Aave on August 13. The Tron founder said that the decentralized protocol had blocked his wallet because of a Tornado Cash-linked transaction.

Peckshield later revealed that over 600 wallets were affected by the ban.

Available information also showed that other decentralized protocols like Uniswap, Balancer, dYdX, and others stopped users because of the OFAC sanction on Tornado Cash.

Crypto Community Questions DeFi Protocols “Decentralization”

Some DeFi protocols’ decision to screen and block addresses that interacted with Tornado cash has led to questions about their “decentralization.”

In Aave’s case, the community questioned the logic of blocking an average user’s access to the front end when malicious players could still choose to directly interact with the contract.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Aave Responds to Blocking Addresses Over Tornado Cash Clampdown appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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Bitcoin price: Analyst doesn’t expect long lasting decoupling ‘at this stage’

Bitcoin continues to hold above the $19,000 mark even as currency woes wreaked havoc…

The post Bitcoin price: Analyst doesn’t expect long lasting decoupling ‘at this stage’ appeared first on CoinJournal.

Bitcoin continues to hold above the $19,000 mark even as currency woes wreaked havoc across stocks and other legacy markets this week.

After dipping to lows beneath $18,600, Bitcoin bounced as high as $20,300 before paring the gains amid a highly volatile market that also saw the S&P 500 Index notch losses that puts it on course for three consecutive quarterly losses. It’d be the first time the index has registered this kind of performance since 2009.

BTC/S&P 500

If stocks face another sell-off and the tumbling continues in the face of a Fed tightening and concerns of a recession, Dylan Leclair, a senior crypto analyst, says the market could see a BTC outperformance against equities.

According to the analyst, Bitcoin’s “relative strength” against legacy indices has been encouraging, pointing to a BTC/S&P 500 chart.

While he doesn’t expect the “decoupling” to be long lasting given broader market conditions, he still thinks the benchmark cryptocurrency could master a decent run against the index. What investors might have to watch out for, he tweeted, is what happens next within the legacy financial markets – equities, FX and global bonds.

The analyst however warns of a potential sell-off for Bitcoin should there be a “huge illiquidity event.” He said:

Still convicted in my view of a legacy system vol event coming – it’s clear that liquidity tide is drawing out. BTC/USD exchange rate won’t be insulated from a huge illiquidity event, because nothing except USD & vol will.”

Bitcoin was trading around $19,260 on Friday morning (09:45 am ET), just in the green on the day but down 1.2% this past week. The S&P 500 opened higher lower and was at 3,634, more than 1.4% down in the past five days. 

The post Bitcoin price: Analyst doesn’t expect long lasting decoupling ‘at this stage’ appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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