zkSNACKs, the developer behind the privacy-focused Bitcoin wallet Wasabi Wallet, has recently blocked access to its services for users in the United States. This decision was made due to regulatory concerns, following the arrest of the co-founders of Samourai Wallet.
As a result of this move, some users in the US are now unable to access the zkSNACKs website, preventing them from downloading and using Wasabi Wallet, as well as other associated services such as RPC interfaces and APIs. To enforce this restriction, the platform implemented an IP address firewall.
While the developer has not provided official statements regarding the reasons behind this decision, there have been rumors that the arrest of the two founders of Samourai Wallet coincided with the policy change and denial of access.
The United States Department of Justice (DOJ) has accused Keonne Rodriguez and William Lonergan Hill, co-founders of Samourai Wallet, of laundering $100 million. The legal measures taken against them could potentially result in a maximum prison sentence of 20 years for the money laundering conspiracy charge, and up to five years for running an unregistered money transmitting company.
Samourai Wallet is known for providing users with a more anonymous way to transact in Bitcoin, but the DOJ believes that the business was primarily used as a front for large-scale money laundering. Notably, two of Samourai’s services, Whirlpool and Ricochet, processed nearly 80,000 BTC and collected fees amounting to approximately $4.5 million.
In a similar development, the creators of Tornado Cash, a widely used cryptocurrency mixer, were also arrested on charges related to their involvement in the platform’s illicit activities. During their court defense, they requested the dismissal of the allegations against them.
In light of these increasing regulatory concerns, Phoenix Wallet has also made the decision to exit the US market. This demonstrates the growing scrutiny faced by cryptocurrency platforms in relation to compliance with regulations.