Crypto mixer zkSNACKs and Wasabi Wallet service is now blocking US citizens from using its service.
Crypto mixers have gained the ire of the US Department of Treasury, which believes that they are frequently used by bad actors to cover their tracks for nefarious activities. The US government has also taken legal action against other mixers.
On the other side of the debate, many people prefer to maintain their privacy, keeping their activities away from prying eyes – including government entities.
The zkSNACKs coordinator is now blocking U.S. residents and citizens from using its coinjoin service.
— Wasabi Wallet (@wasabiwallet) April 27, 2024
In a blog post from this past weekend, zkSNACKS said that effective immediately and until further notice, they are blocking US citizens and residents from visiting its websites, downloading and using Wasabi Wallet, and any related products and services, including APIs and RPC interfaces.
The company explained:
“In light of recent announcements by U.S. authorities, zkSNACKs is now strictly prohibiting U.S. users from using its services. An IP address blocking for U.S. residents is effective on wasabiwallet.io, api.wasabiwallet.io and zksnacks.com.
“U.S.” refers to “United States” and includes the several states of the United States and related territories. If you are a United States Citizen or United States Resident, you are not allowed to visit any sites aforementioned, download Wasabi Wallet or use the Wasabi Wallet coinjoin feature. This includes if you are a U.S. permanent resident or if you are an individual that holds a U.S. passport.”
The Wasabi Wallet was founded in 2018 as an open-source Bitcoin wallet.
Last week, the US Department of Justice announced that it had charged Keonne Rodriguez and William Lonergan Hill with operating Samourai Wallet, another mixer service, described as an “Unlicensed money transmitting business that executed over $2 billion in unlawful transactions and laundered over $100 million in criminal proceeds.”
Both Rodrigeuz and Hill were arrested. Rodrigeuz was apprehended in the US, and Hill was arrested in Portugal, where he is expected to be extradited to the US. Samourai’s web servers and domain were seized.
The two face charges of one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money-transmitting business, which carries a maximum sentence of five years in prison.