According to GitHub data, Uniswap has blacklisted 253 Crypto addresses associated with embezzlement or sanctions. This is the first time the exchange has revealed information about blacklisting.
Uniswap, a Decentralized Exchange, has been working with Blockchain analytics firm TRM Labs for the past four months. The majority of the addresses were blocked due to links to stolen funds that mixed transactions like Tornado Cash.
Uniswap and TRM Labs collaborated earlier this year. TRM Labs receives users’ addresses when they interact with the Uniswap website and assigns an appropriate risk level. Following that, it is up to Uniswap to decide how much risk it is willing to take.
According to Yearn Finance core developer Banteg, the information on the blocked accounts was published on GitHub by Uniswap engineer Jordan Frankfurt. According to comments on Github by Frankfurt, the exchange initially blacklisted addresses that were indirectly linked to sanctioned addresses; however, Uniswap has since scaled back its efforts.
Only addresses that have been sanctioned or have directly received hacked or stolen funds are now blocked by the exchange. In regards to frontend censoring through TRM Labs, Banteg stated that Uniswap has offered an exceptional level of transparency.
TRM Labs monitors addresses for seven types of illegal activity, according to a GitHub chart. The four most commonly flagged categories are:
- Stolen funds
- Funds from a transaction mixer
- Sanctioned addresses, and
- Funds from a known scam
The remaining three categories are child sexual abuse materials, terrorist financing funds, and funds from a well-known hacker group. Banteg went on to say that 30 of the blocked addresses were linked with ENS names, but that the majority of them were legitimate users.
Banteg continued: Ownership and being a counterparty to a ‘bad’ address are both investigated and can lead to blocking.
He went on to say that the information wasn’t intended to be public.
