According to a recently published report, decentralized exchange (dex) Uniswap has blocked approximately 253 cryptocurrency addresses allegedly linked to crimes or government sanctions. The information was discovered by software developer Banteg who analyzed and recorded Uniswap’s shared server logs.

30 of the 253 blocked addresses are ENS domain names, Uniswap labels 7 types of risk factor categories

On August 19, software developer and Yearn Finance contributor Banteg published a Twitter feed which claims that the Uniswap dex blocks 253 crypto addresses. “Uniswap provided an unusual level of transparency,” Banteg said of “front-end censorship via TRM Labs.” Uniswap partnered with TRM Labs in mid-April, and the company is blacklisting crypto addresses that may be associated with penalties and crypto crimes.

Github repository screenshot shared by Banteg on August 19, 2022.

The same month, reports appeared which indicated that a few innocent Uniswap users were affected by the front-end controlled by TRM Labs. At the time, no one was sure of the exact number of crypto addresses blacklisted by Uniswap’s TRM Labs front end. Banteg says there is 253 addresses and 30 addresses are ENS domain names. The developer also noted that there are seven different types of risk factor categories and two risk levels.

“Ownership and being a counterparty to a ‘wrong’ address is checked and can contribute to blocking,” Banteg said. wrote. According to Banteg, the data “wasn’t meant to be public,” but the developer noted that people could still get an “exclusive look at the very first [TRM Labs] leak, courtesy of Uniswap.

Smart contracts and code are defined, not the web platforms that host them

The news follows the recent US Government Ban on Tornado Cash, the Ethereum mixing protocol that leverages Coinjoin and ZKsnark technology. After Tornado Cash was banned, an open source developer was stoppedthe Github code was erasedcontributors to the Tornado Cash Github code base have been suspended and the project’s Discord server has been deleted.

Uniswap Censors 253 Crypto Addresses Blacklisted For Crime, Sanction Associations

However, the non-profit organization that focuses on policy issues facing crypto assets, Coin Center, believes that the US Treasury Department’s Office of Foreign Asset Control (OFAC) “exceeded its legal authority. “. Coin Center is investigating the legality of the Tornado Cash ban and plans to “engage” with OFAC to discuss the matter.

Uniswap Censors 253 Crypto Addresses Blacklisted For Crime, Sanction Associations

While Uniswap has updated its closed front-end by TRM Labs, there are likely many more crypto companies and decentralized finance (defi) protocols following the same metrics. For example, on August 8, Banteg revealed that the Center Consortium, the stablecoin issuer operated by Circle Financial and Coinbase Global, has blacklisted 75,000 USDC belonging to Tornado Cash users.

“I think this is the first instance where a pool has been frozen and not an individual account,” Banteg said at the time.

The issues surrounding Tornado Cash, and the precautions taken by challenge teams like Uniswap, expose the underlying weakness of so-called “decentralized finance” protocols and whether or not they are truly decentralized.

Uniswap Censors 253 Crypto Addresses Blacklisted For Crime, Sanction Associations

Even before Tornado Cash was banned by the US government, Tornado Cash developers blacklisted an OFAC-listed Ethereum address using a Chainalysis oracle contract. Additionally, in July 2021, users criticized Uniswap for blocking more than 100 tokens from the main interface.

Uniswap Censors 253 Crypto Addresses Blacklisted For Crime, Sanction Associations

During these two instances, crypto users discussed how they could simply leverage Tornado Cash code or smart contracts from Uniswap and mirror sites to circumvent these types of restrictions. The point is that Uniswap is a US registered company and the interface, or the website, is owned by the US entity. Over time, people may want to clarify that defi web portals are not decentralized, and the only things that could be classified as such would be smart contracts and code.

Keywords in this story

Banteg, 75000 USDC blacklist, Center Consortium, Code, CoinJoin, Crimes, crypto crimes, Decentralized, DeFi, OFAC, OFAC ban, Sanctions, Smart Contracts, so-called defi, Tornado cash, TRM labs, TRM Labs-gated front end , uniswap , Uniswap addresses, Uniswap interface, US government ban, ZKsnarks

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Jamie Redman

Jamie Redman is the news manager for News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for News about disruptive protocols emerging today.

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