Business Markets News Report
November 24, 2023

F2pool Retreats on OFAC Censorship After Bitcoin Community Backlash

F2pool Retreats on OFAC Censorship After Bitcoin Community Backlash

F2pool, a prominent Bitcoin mining pool, recently faced controversy for filtering transactions from addresses flagged by the Office of Foreign Assets Control (OFAC).

The practice came to light following an investigation by Bitcoin developer 0xB10C. Amidst community backlash, F2pool co-founder Chun Wang announced a reversal of this policy, citing the need for broader community consensus.

Compliance with OFAC Sanctions

F2pool, known as one of the largest Bitcoin mining pools globally, admitted to implementing a compliance filter on transactions from OFAC-flagged addresses.

This admission followed an analysis by 0xB10C, which suggested that F2pool was intentionally excluding certain transactions.

The investigation focused on six transactions, four of which appeared to be filtered by F2pool, while the remaining two might have been excluded for different reasons.

Community Reaction

Responding to the findings, Wang defended F2pool’s actions in a now-deleted post, questioning the surprise at his refusal to confirm transactions from individuals he labeled as criminals, dictators, and terrorists.

He also commented on the need for a censorship-resistant system built into Bitcoin’s protocol, learning from the internet’s mistakes in this area.

This stance, however, sparked significant backlash from the community, with users criticizing Wang for imposing personal values and misusing the hashrate controlled by F2pool.

Following the community’s strong response, F2pool backtracked on its transaction filtering policy. In another deleted post, Wang announced the suspension of the filtering practice, indicating a wait for a more comprehensive consensus within the community on this matter. This decision marks a pivotal moment in the ongoing debate over censorship and autonomy in the Bitcoin ecosystem.

The incident with F2pool highlights the complex dynamics between regulatory compliance and the foundational principles of cryptocurrency networks like Bitcoin. As the community navigates these challenges, the balance between autonomy, censorship resistance, and legal compliance continues to evolve, shaping the future of decentralized finance.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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