Wasabi Wallet developer ZkSNACKs will discontinue its CoinJoin anonymization solution as of June 1 amid growing pressure from law enforcement against cryptocurrency mixers. This move will also affect users of the Trezor Suite wallet and BTCPayServer payment gateway.
After years of relentless dedication to improve Bitcoin's privacy, zkSNACKs, the company pioneering the development of Wasabi Wallet, is shutting down its coinjoin coordination service, effective June 1st, 2024.
Blog post announcement link:https://t.co/zMxvQJuQFZ
— Wasabi Wallet (@wasabiwallet) May 2, 2024
Although CoinJoin markets its tools as more complex and completely different from mixing services, its technology has similar goals.
Wasabi Wallet will continue to function as a regular Bitcoin wallet.
Last week, ZkSNACKs blocked access to Wasabi Wallet for US citizens and residents.
Regulators around the world are tightening their rhetoric towards cryptocurrency mixers. In particular, FinCEN plans to declare them “money laundering centers” that threaten US national security.
At the end of April, US Federal Prosecutor's Office charged two co-founders of the Samourai Wallet, which also used CoinJoin, with facilitating the laundering of $100 million for cybercriminals and sanctioned entities. Top managers face up to 25 years in prison.
Samourai Wallet CEO Keonn Rodriguez pleaded not guilty and was released on $1 million bail. CTO William Lonergan Hill, who was arrested in Portugal, is awaiting extradition to the United States.
In November 2023, California-based Bitcoin platform Swan Bitcoin warned users via email that they would be permanently banned for directly using cryptomixers.
In March 2024, a jury in the United States found Russian Roman Sterlingov involved in managing the Bitcoin Fog mixing service and laundering more than $400 million. He faces up to 20 years in prison.
Alexey Pertsev, the developer of the Tornado Cash mixer, is also awaiting a court verdict, accused of laundering $1.2 billion in illegal funds. They asked for 64 months in prison for him.
Source: Cryptocurrency
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