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Compliance

Compliance Without Freezing​

Wagyu has integrated compliance checks with maximum protection for users. Funds that do not pass compliance are not allowed to enter the pool. Your funds are never at risk.

Problem with Traditional Compliance​

We've seen too many protocols falsely freeze funds, after which it becomes completely unclear where those funds end up. Some services mysteriously get hacked with frozen funds disappearing. Users are left in limbo, suddenly facing KYC requests or simply losing access to their assets indefinitely.

Retail users don't have access to compliance providers and cannot reasonably be expected to determine if funds have an illicit origin before receiving them. There are countless scenarios where a legitimate user can end up with a high-risk wallet through no fault of their own, for example:

  • Legacy mixer usage: You used Tornado Cash in 2020 when it was widely considered acceptable, but now any deposit to a CEX or instant swap results in seizure
  • Dust attacks: A tainted address sends you $0.01 to deliberately poison your wallet's risk score through association
  • Unknowing receipt: A user receives payment but has no visibility into where the funds came from. The funds could have been withdrawn from a CEX, routed through bridges, moved across chains, or combined from multiple addresses. Without chain analysis tools, identifying if funds are tainted is impossible.
  • Indirect exposure: Your funds passed through a service that was later flagged, retroactively tainting your transaction history

In all these cases, traditional compliance holds users accountable for circumstances beyond their control.

Wagyu Compliance: Blocking High-Risk Wallets​

Wagyu is a cross-chain swap service with real-time analysis running on all chains. The compliance checks happens before deposits are processed, before swaps are initiated.

When a deposit arrives, Wagyu's integrated compliance provider immediately runs AML scans and more. If funds originate from a high-risk address, they are not allowed to enter the pool.

Wagyu will never request your KYC and assets are never frozen.