Uniswap blocked 253 crypto addresses, here’s why
Uniswap the decentralized exchange has blocked 253 crypto addresses in the past four months that it worked with TRM Labs, which is a blockchain analytics firm. The reason behind the blocking was related to connections with stolen funds.
This makes it the first time Uniswap has disclosed data related to wallet blacklisting. These stolen funds were related to transaction blending services that included Tornado Cash which was sanctioned by the US Treasury Department.
This data regarding embezzlement was provided on GitHub by Uniswap software engineer Jordan Frankfurt. According to Yearn Finance, developer Banteg had posted one chirping which included that Uniswap had blocked 253 crypto addresses.
One of the tweets said, “Uniswap has provided an unusual level of transparency,” Banteg said regarding “front-end censorship via TRM Labs”. Uniswap had recently partnered with TRM Labs this year in the beginning and the organization is responsible for blacklisting crypto addresses that are linked to sanctions and crypto-related illegal activities.
The types of risk factors highlighted by Uniswap
There was ambiguity regarding how many crypto addresses were blacklisted by Uniswap in collaboration with the TRM Labs interface.
It was later mentioned that 253 addresses were blacklisted and 30 addresses are ENS (Ethereum Name Service) domain names. Banteg, the developers have also noted that there were a total of seven different types of risk factor categories and also two levels of risk.
Banteg also stated that
Both ownership and being the counterparty to a “bad” address are checked and can contribute to blocking.
In addition, there are three cores that comprise Uniswap. The first is the code that runs on the blockchain that anyone can interact with.
The second must be a front-end site that provides a way for users to interact with the code, third a company that develops the protocol that runs the front-end site.
The company is based in the USA. Blocking of the crypto addresses will happen at the front-end level.
What are the seven types of crimes highlighted?
The comments on GitHub according to Frankfurt, the Uniswap software engineer, had initially blocked the addresses indirectly associated with the sanctioned addresses, but were reduced.
According to the graphic posted on GitHub. it mentioned the seven types of bad behavior that TRM Labs will look for while verifying the addresses. Stolen funds from the transaction mixer, sanctioned addresses, additional funds from known fraud are the four most important categories that are often detected.
Other remaining categories include money used to finance terrorism and funds from hackers, it also includes cases involving child sexual abuse.
Banteg mentioned that to simplify the process of delivering the crypto payments to these wallets, 30 of these addresses were associated with ENS (Ethereum Name Service) names.
