A decision by bloXroute Labs to start censoring OFAC-sanctioned blocks has been seen as a loss for Ethereum censorship resistance.
One of the largest producers of censorship-resistant blocks on Ethereum has u-turned, announcing it will start censoring blocks sanctioned by the United States Office of Foreign Asset Control (OFAC) across all of its maximum extractable value (MEV) relays in compliance with local laws.
The firm, bloXroute Labs — which has produced at least 400,000 Ethereum blocks from its two leading MEV relays — made the announcement of its policy change on Dec. 18 in a post on X (formerly Twitter), noting:
An “OFAC transaction,” as described by bloXroute Labs, is any that interacts with a wallet sanctioned by OFAC.
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Source: https://cointelegraph.com/news/concerning-precedent-bloxroute-labs-mev-relays-to-reject-ofac-blocks