Uniswap has blacklisted 253 crypto addresses linked to embezzlement or sanctions according to data from GitHub. This is the first time the exchange revealed data on blacklisting.
Over the past four months, decentralised exchange Uniswap has been collaborating with blockchain analytics company TRM Labs. Most of the addresses were blocked as a result of links to stolen funds that mix transactions such as Tornado Cash. Uniswap and TRM Labs teamed up earlier this year. When users interact on the Uniswap website, TRM Labs receives their address and assigns an appropriate risk level. Thereafter, Uniswap is in charge of determining what degrees of risk it is comfortable with.
The data on the blocked accounts were published on GitHub by Uniswap engineer Jordan Frankfurt, according to Yearn Finance core developer Banteg. According to Frankfurt’s comments on Github, the exchange initially blocked addresses that were indirectly linked to sanctioned addresses – Uniswap has since scaled back its efforts. The exchange now only blocks addresses that have been sanctioned or have directly received hacked or stolen funds. “Uniswap has provided an unusual level of transparency,” Banteg said in regard to “frontend censoring via TRM Labs.”
According to a chart shared on GitHub, TRM Labs surveils addresses for seven types of illegal activity. Stolen funds, funds from a transaction mixer, sanctioned addresses, and funds from a known scam are the four categories mostly flagged. The three remaining categories include child sexual abuse materials, funds used for terrorist financing, and funds from a known hacker group. Banteg added that 30 of the blocked addresses were associated with ENS names, although noted that most of them were legitimate users.
Both ownership and being a counterparty of a ‘bad’ address are checked and can contribute to blocking.
He continued to say that the data “wasn’t meant to be public.”
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