DeFi platform Oasis.app starts blocking wallets with sanctions risks

According to the updated terms of service, such addresses are prohibited from using the app to manage positions or withdraw funds

12.08.2022 - 16:25

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2 min

What’s new? Sanctioned wallets will no longer be able to access Oasis.app, a DeFi platform, Cointelegraph reports. A spokesperson for the project explained that the developers needed to update the terms of service of the interface in order to comply with legal and regulatory requirements. As a result of the change, addresses flagged as high-risk are prohibited from using the app to manage positions or withdraw funds.

Cointelegraph’s material

What else is known about blocking wallets? An Oasis.app representative did not say what tools the platform uses to identify high-risk wallets. On Twitter, a developer under the pseudonym banteg suggested that Oasis.app is cooperating with blockchain analytics company TRM Labs.

Link to Twitter

In June, exchange developer Uniswap turned to the services of TRM Labs to identify and block crypto wallets associated with criminal activity.

Some Oasis.app users note that they have been unable to use the app using a wallet that has interacted with cryptocurrency mixer Tornado Cash in the past, including more than two years ago, against which US authorities imposed sanctions on August 8. On August 10, the dYdX exchange also blocked users whose addresses interacted with the mixer. The ban included accounts whose owners, according to exchange representatives, may not have known about the origin of funds. They were subsequently restored.

Oasis.app platform is designed to exchange tokens and borrow DAI stablecoins issued by Maker Protocol, a decentralized application (dApp) on the Ethereum blockchain. As of August 12, Oasis.app manages deposits worth $3,42 billion, the volume of transactions over the past 30 days amounted to $4,63 billion.

For more details on the experts’ opinions on the dangers of interacting with sanctioned services such as Tornado Cash, see GetBlock Magazine’s article.

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