EtherDelta's November 2022 $450K OFAC settlement - the first against a DeFi platform. What it means for protocols, agents, and screening.
In November 2022, EtherDelta settled with OFAC for $450,000 - the first enforcement action against a DeFi platform. The precedent matters for every protocol and the agents that use them.
OFAC found EtherDelta failed to implement sanctions screening and processed transactions involving sanctioned users (including users in embargoed jurisdictions). The settlement established that DeFi platforms do not get an exemption from screening obligations.
EtherDelta predated the Tornado Cash designation and the OFAC 'smart contract' guidance. Together they form the enforcement posture on DeFi: the platform operator carries the obligation, and code does not waive it.
An agent calling a protocol is the operator's action. Screen the counterparty before the contract call - the same discipline the settlement enforced on the platform.
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