Friday, October 7, 2022
HomeGeneral BlockchainDeFi Protocol Aave Bans Justin Sun After He Randomly Received 0.1 ETH...

DeFi Protocol Aave Bans Justin Sun After He Randomly Received 0.1 ETH from Tornado Cash

Decentralized protocol Aave has banned the pockets tackle of Justin Solar, the founder and CEO of the Tron blockchain venture, for unknowingly interacting with sanctioned Ethereum-based crypto mixer Twister Money. 

On Saturday, Justin Solar took to Twitter to substantiate that Ethereum-based DeFi protocol Aave had formally blocked his tackle after an unknown particular person despatched him 0.1 ETH from Twister Money.

U.S. Sanctions Twister Money

Recall that the USA Division of the Treasury’s Workplace of International Property Management (OFAC) just lately sanctioned Twister Money for serving to unhealthy actors launder crime proceeds, together with these dedicated towards victims within the U.S. 

The sanctions come after the crypto mixer turned a laundering hub for hackers who drained at the very least $1.4 billion from DeFi bridges and different crypto hacks for the reason that begin of this 12 months. 

Shortly after the sanctions, an unknown person despatched 0.1 ETH from a blacklisted Twister Money contract tackle to huge crypto-related corporations, standard crypto figures, celebrities, and random merchants, maybe in an try and mock the U.S. Treasury. 

In accordance with blockchain safety agency PeckShield, greater than 600 addresses acquired 0.1 ETH from Twister Money. The record contains Binance, FTX, Beeple, Coinbase’s Brian Armstrong, Justin Solar, sifu.eth, and Ukraine Crypto Donation.

Decentralization within the Mud? 

Surprisingly, at the very least 5 decentralized protocols, together with Uniswap, Balancer, and dYdX, have blocked those that randomly acquired the ETH airdrop from the blacklisted pockets alongside those that have beforehand interacted with Twister Money, inflicting crypto customers to query the idea of decentralization.

The ban might additionally trigger liquidation issues if crypto costs crash. It is because blocked DeFi customers with lively loans received’t have the ability to entry their accounts so as to add liquidity and handle their Mortgage-to-value (LTV) to keep away from compelled liquidation.  

Some folks imagine that the ban is seemingly on the front-end, and customers can nonetheless entry their accounts by way of a command-line interface (CLI) or by forking the venture to create their very own front-end interface. Nonetheless, that’s past the technical know-how of common DeFi customers. 

Aave Responds

In a Twitter thread, the Aave crew noted that they just lately built-in TRM’s API to the platform’s IPFS front-end, which is why some customers had points accessing the Aave app. 

In accordance with the protocol, the combination helps determine wallets that interacted with Twister Money contracts after the sanctions. Nevertheless, the API made incorrect calls and blocked wallets that acquired ETH from the mixer contracts with out consent. The Aave crew mentioned the problem had been resolved, and Justin Solar and different customers regained entry to their accounts. 


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