Uniswap have blocked 253 crypto addresses due to their alleged involvement with stolen funds. The decentralized exchange did the blocking in the last four months that it worked with a blockchain analytics firm, TRM Labs.
It is for the first time that Uniswap has revealed information related to wallet blacklisting. The stolen funds reportedly have ties with the transaction mixing services including Tornado Cash. To the unfamiliar, the US treasury has recently sanctioned Tornado Cash.
Jordan Frankfurt, the Uniswap software engineer, made the data regarding stolen funds available on Github. While, Banteg, a Yearn Finance developer, through a tweet informed Uniswap had blocked 253 crypto addresses.
In relation to “frontend censoring via TRM Labs,” Banteg said in one of the tweets that Uniswap has shown an unusual level of transparency. At the start of the year, Uniswap came in partnership with TRM Labs. The organization is behind the blacklisting crypto addresses in ties with sanctions and illegal activities related to crypto.
Uniswap Highlighted These Risk Steps
Earlier, there was some confusion around the number of blocked crypto addresses. Later, it was disclosed that 30 addresses are ENS (Ethereum Name Service) domain names and 253 addresses were blacklisted. Banteg also noted that there were seven different types of risk factor categories along with two risk levels.
Further stating, Banteg said both being a counterparty and ownership of a ‘bad’ address are checked and can contribute to blocking. In addition, Uniswap has some amazing core features, for instance anyone can interact with the code running on the blockchain. It also develops the protocol that is responsible for running the front-end website. Since the company is not based in the U.S, the blocking of crypto addresses is going to happen on the front-end level, undoubtedly.
As per the graphic published on GitHub, it stated the seven types of ill conduct which TRM Labs will analyze before verifying. Among the four major categories were: Stolen funds from the transaction mixer, extra funds from known fraud and sanctioned addresses.
Source: https://www.thecoinrepublic.com/2022/08/21/heres-why-uniswap-blocked-these-253-addresses/