# Privacy Matters, 6 By [Automata Network](https://paragraph.com/@automata-network) · 2023-08-25 --- gm, readers. At [Automata](https://www.ata.network/) we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy. **This Week:** -------------- * FTX bankruptcy claims agent Kroll [compromises](https://twitter.com/FTX_Official/status/1694899217326608611) non-sensitive user data * friend.tech [rejects](https://cointelegraph.com/news/friendtech-denies-report-leaked-user-data) reports of leaked user information * Terra [warns](https://cryptoslate.com/terra-official-website-compromised-replaced-with-phishing-site/) users of a malicious phishing site compromising their official website * Anonymity-focused ATOR Protocol [enters](https://medium.com/@atorprotocol/ator-to-enter-testnet-phase-f468993de752) testnet phase * Coinbase-backed group [loses](https://www.coindesk.com/policy/2023/08/17/coinbase-backed-group-loses-lawsuit-arguing-tornado-cash-sanctions-overstepped-us-treasurys-authority/) lawsuit against U.S. Treasury over last year’s Tornado Cash sanctions **Zooming into ZK:** -------------------- * KyberSwap [integrates](https://twitter.com/KyberNetwork/status/1691755493944119362) Polygon zkEVM * Scroll enters Beta phase with [launch](https://scroll.io/blog/scrollSepolia) of Sepolia testnet * Binance Labs [invests](https://www.binance.com/en/blog/ecosystem/binance-labs-invests-in-delphinus-lab-the-first-opensource-zkwasm-virtual-machine-to-support-next-era-of-web3-applications-3444797851566042967) in zkWASM infrastructure provider Delphinus Lab **Op-Ed Feature:** ------------------ * Medium writer Stanley Thomas [shares](https://medium.datadriveninvestor.com/web3-social-media-platforms-a-paradigm-shift-in-online-engagement-b6aafca95b54) about privacy and engagement in the landscape of Web3 social media **We dive into the details, so you don’t have to:** --------------------------------------------------- friend.tech continues to flood CT even this week, [contributing](https://twitter.com/brian_armstrong/status/1694130549403607041) massively to the success of Coinbase’s L2, Base. The [Paradigm-backed](https://tokeninsight.com/en/news/decentralized-social-platform-friend.tech-received-investment-from-paradigm) Web3 social app [ranked](https://www.theblock.co/post/246423/friend-tech-fees) 3rd in 24h fees earlier this week, just behind Lido and Ethereum. Amidst its success, a [report by The Block](https://www.theblock.co/post/246529/friendtech-leaked-database-ethereum-addresses) claiming that there has been a “leaked database of 101,000 friend.tech users” deepened the crypto community’s frustration towards the app’s lack of privacy protection, as highlighted in our [previous issue](https://mirror.xyz/0xd0A0012b360B92A14c655A3fD60cfC52A99353e4/fL5vFRRvWldl2-RHQEzYXaCqQipmo4_nLnDU-Gfaow0#:~:text=friend.tech%2C%20a%20rising%20Web3%20social%20platform%20on%20Base%2C%20raises%20concerns%20with%20missing%20privacy%20policy). friend.tech called out the report for factual inaccuracy, [stating](https://twitter.com/friendtech/status/1693641339395531072) that the information was public and scraped from their API rather than being “leaked”. This was also supported by X’s community notes for The Block’s associated post. As a privacy precaution, multiple KOLs have encouraged users to revoke friend.tech’s access to their X accounts which is automatically approved when signing in to the app. [![User Avatar](https://storage.googleapis.com/papyrus_images/cee6000aad740da9a0f4eea08f71a5cb901780f7c791b3d7ea9a9e2531760ecd.jpg)](https://twitter.com/alpha_pls) [Aylo](https://twitter.com/alpha_pls) [@alpha\_pls](https://twitter.com/alpha_pls) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/alpha_pls/status/1693606818340073766) One thing you should do if you are using friend tech is revoke access to X. Head to settings, security and account access and just click revoke on friend tech. You needed to connect it to begin with, but you can revoke afterwards. friend tech will then no longer have access ![](https://storage.googleapis.com/papyrus_images/02b2daec8b998b9c13c2cacf63cfbe8e48afec9d6ba60b252c7cfdfb563185cd.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 408](https://twitter.com/alpha_pls/status/1693606818340073766)[ 7:51 AM • Aug 21, 2023 ](https://twitter.com/alpha_pls/status/1693606818340073766) Texas federal court judge has ruled in favor of the United States Department of the Treasury, rejecting a lawsuit brought forth by six individuals backed by Coinbase who claimed that the US Treasury Department overstepped its authority when [sanctioning Tornado Cash last year](https://www.coindesk.com/policy/2022/08/08/crypto-mixing-service-tornado-cash-blacklisted-by-us-treasury/). A few days after this ruling, Tornado Cash co-founders, Roman Semenov and Roman Storm, were [charged](https://cointelegraph.com/news/tornado-cash-co-founders-charged-with-money-laundering-sanctions-violations-ofac) with conspiracy to commit money laundering, sanctions violations, and to operate an unlicensed money-transmitting business. Tornado Cash is a cryptocurrency mixer, a decentralized privacy solution designed to enhance the privacy and anonymity of crypto transactions. Principally, this ruling entails that Judge Pitman has classified DAOs as legal entities which could have dramatic ramifications for the blockchain ecosystem. This [isn’t the first time](https://www.coindesk.com/business/2022/12/13/us-judge-in-ooki-dao-trial-orders-cftc-to-serve-original-founders-with-lawsuit/) a DAO was ruled as an association in the eyes of the law. Coinbase chief legal officer Paul Grewal reacted to the ruling, maintaining Coinbase’s continued support to the appeal. [![User Avatar](https://storage.googleapis.com/papyrus_images/c0cc38c65a3a708709a792d1be33d9cf089e45c8728361dd21ee1c815fc2b66a.png)](https://twitter.com/iampaulgrewal) [paulgrewal.eth](https://twitter.com/iampaulgrewal) [@iampaulgrewal](https://twitter.com/iampaulgrewal) [![Twitter Logo](https://paragraph.com/editor/twitter/logo.png)](https://twitter.com/iampaulgrewal/status/1692260842585350334) Rights are rarely secured on a path that is always ![⬆️](https://abs-0.twimg.com/emoji/v2/72x72/2b06.png) and ![➡️](https://abs-0.twimg.com/emoji/v2/72x72/27a1.png). We continue to believe Plaintiffs' challenge to OFAC's Tornado Cash action is right. We’ve always known that Fifth Circuit review is required to resolve these issues, and we continue to support them on appeal. 1/4 ![](https://storage.googleapis.com/papyrus_images/7f889dc05c275dd09ce642b935e3fab0e06c44675c411c29fe42cdf52c4af37a.jpg) [![Like Icon](https://paragraph.com/editor/twitter/heart.png) 279](https://twitter.com/iampaulgrewal/status/1692260842585350334)[ 2:43 PM • Aug 17, 2023 ](https://twitter.com/iampaulgrewal/status/1692260842585350334) Connect with Automata on both [Twitter](https://ata.ws/twitter) and [Discord](https://ata.ws/discord). [Subscribe](null) _This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading._ --- *Originally published on [Automata Network](https://paragraph.com/@automata-network/privacy-matters-6)*