Following reports of censorship from hardware wallet manufacturer, Trezor, CryptoSlate has received confirmation Trezor denies some UTXOs from entering the coinjoin coordinator to protect the privacy of other users.
A representative for Trezor stated,
“We also acknowledge a responsibility to prevent UTXOs which are already under surveillance, from harming the privacy of other participants because of the connection to serious crimes.”
The company further acknowledged the “sensitive issue” of the matter. However, it reinforced that all refusals are done with the aim of “supporting coinjoin transactions is to provide individual users with privacy.”
Trezor also confirmed that no on-chain data analysis company receives “any coins”; instead, a “risk score” is returned based on the “UTXO entering the coinjoin.” Based on the risk score, some UTXOs may be refused if flagged as “under scrutiny.”
“When UTXOs known to be under scrutiny enter a coinjoin, the coordinator will just refuse them. Nothing worse than this happens.
We cannot check individual users or track or report on their activity since coinjoin is enabled via Tor, the anonymization network and moreover, we use block filters.”
Further information on Trezor’s approach to coinjoin can learn more on the Trezor website.
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