Key Takeaways
- zkSNACKs has prohibited US citizens and residents from using Wasabi Wallet products and services;
- The policy change follows the arrest of the founders of Samourai Wallet for alleged money laundering activities;
- This action is part of a broader US crackdown on privacy-focused crypto services.
US citizens and residents will be prohibited from using the products and services of Wasabi Wallet, a non-custodial privacy-focused Bitcoin wallet.
This was announced by the wallet's developer, zkSNACKs, in a recent blog post.
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The team at zkSNACKs has implemented IP address blocking for US residents across these domains: wasabiwallet.io, api.wasabiwallet.io, and zksnacks.com.
The developer has attributed this decision to "recent announcements by US authorities."
This refers to the arrests of the founders of Samourai Wallet, another privacy-focused Bitcoin wallet. They were charged with money laundering and operating an unlicensed money-transmitting business, facing up to 25 years in prison.
This all comes after the arrest of Roman Storm, co-founder of the crypto mixer Tornado Cash. He was accused of money laundering, sanctions violations, and operating an unlicensed money-transmitting business — charges tied to allegations that the crypto mixer helped the North Korean Lazarus Group bypass US sanctions and fund the country's nuclear program.
The developer of Tornado Cash, Alexey Pertsev, may face over 5 years in prison for concealing criminal financial flows and facilitating the laundering of $1.2 billion through the crypto mixer, with a verdict expected on May 14.
The chain of legal actions against crypto service providers underscores growing scrutiny of crypto operations by US authorities, particularly those offering privacy-enhancing services that could potentially obscure illegal financial flows.