According to PANews, bloXroute Labs, one of the largest censorship-resistant block producers on Ethereum, announced that it will begin reviewing OFAC-sanctioned blocks on all its MEV relays in accordance with local laws. bloXroute Labs has produced at least 400,000 Ethereum blocks from its two leading MEV relays. The company announced its policy change in a post on the X platform, stating: "Effective immediately, all bloXroute relays will reject block bids if they contain OFAC transactions."
All bloXroute Labs relays are affected, including the "bloXroute Max Profit" relay, which has produced more than 380,000 blocks since the Ethereum merge on September 15, 2022. However, bloXroute Labs said it remains committed to keeping Ethereum decentralized and permissionless while operating within the law. Some members of the Ethereum community have commented that stricter compliance measures now limit the path to trusted neutrality on Ethereum. Labry CEO Lachlan Feeney said this "sets a worrying precedent for the industry" and that "as with the Internet, censorship should be avoided at the protocol level. Instead, rules and regulations are best applied at the application level."