https://depression2022.substack.com/p/8172022-my-eth-wallet-is-wrongly The Great Reset Diary 2022- SubscribeSign in Share this post [https] 8/17/2022: My ETH Wallet is Wrongly Sanctioned depression2022.substack.com Copy link Twitter Facebook Email 8/17/2022: My ETH Wallet is Wrongly Sanctioned Why are DeFi victims being sanctioned? [https] Yun-Fang Juan 4 hr ago 1 1 Share this post [https] 8/17/2022: My ETH Wallet is Wrongly Sanctioned depression2022.substack.com Copy link Twitter Facebook Email [https] I never thought I would be in this position but I had $300K worth of crypto locked inside AAVE and I couldn't access it. Apparently, my ETH wallet with an ENS attached to it is being blocked by DeFi protocols such as AAVE and Uniswap related to the Tornado Cash Ban. As a law abiding citizen, this erroneous ban is outrageous. I am a DeFi victim, not a DeFi hacker. As mentioned previously, I am a victim of the Furucombo Attack and lost $200K from the exploit. The Furucombo Hacker transferred ~40K PERP tokens from my address (0x660939b21C0ac3339A98dB9FFBdA74Cd59E07685) with this transaction , swapped all the tokens to ETH and used Tornado Cash to launder the money. I suspect the fact that there's a direct transfer from my wallet to the hacker's wallet resulted in the sanction. But that transfer is the hack itself. The sanction algorithm is so dumb that it thinks my wallet should be banned. (There are not that many DeFi hacks. Whoever comes up with the algorithm should be able to do a decent job to know who are the victims and who are the perpetrators.) I also checked the US Treasury sanction list related to the Tornado Cash ban. My ETH address is not on the list so the ban on my wallet is derived. I truly hope this can be fixed because this erroneous sanction on my wallet undermines the credibility and gives the naysayers a stronger voice of why the Tornado Cash ban is a mistake. I do believe something needs to be done with all the DeFi hacks but it should also be done right. Having such an obvious false positive is not doing anyone any good. [https] Interestingly, in the end I was able to withdraw all my funds from AAVE through direct contract calls as illustrated above. So basically the web UI is blocked but people can still use AAVE by sending transactions to the blockchains directly. I am not sure how useful blocking the web UI is for sanctioning a wallet. I believe most hackers are able to make direct contract calls since that's usually how they carry out the hacks. It is true though that for upgradable proxy contracts , the DeFi protocols will be able to carry out the sanctions at the smart contract level in the future. That's probably be the direction the authorities would push the DeFi protocols toward. It would make DeFi safer to use but this direction will also be against the ethos of decentralization and anti-censorship for blockchains. It's a dilemma the crypto community will grapple with in the coming years. Like this post 1 Share this post [https] 8/17/2022: My ETH Wallet is Wrongly Sanctioned depression2022.substack.com Copy link Twitter Facebook Email 1 Comment [https] [ ] Create your profile [ ] Your name[ ]Your bio[ ] [ ][ ] Subscribe to the newsletter 0 subscriptions will be displayed on your profile (edit) Skip for now Save & Post Comment Only paid subscribers can comment on this post Already a paid subscriber? Sign in Check your email For your security, we need to re-authenticate you. Click the link we sent to , or click here to sign in. Dogwit 40 min ago Coordinate with the policy advocacy group Coin Center. [https] They're looking to fight OFAC in court. Expand full comment ReplyCollapse TopNewCommunity No posts Ready for more? [ ]Subscribe (c) 2022 Yun-Fang Juan Privacy [?] Terms [?] Collection notice Publish on Substack Get the app Substack is the home for great writing This site requires JavaScript to run correctly. Please turn on JavaScript or unblock scripts