The end of CoinJoin in Wasabi Wallet
The company zkSNACKs, the developer of the Bitcoin wallet Wasabi Wallet, has announced that it will stop supporting the CoinJoin service used for anonymizing crypto transactions starting from June 1, 2024. This decision was made in response to the increasing pressure on such services in the United States.
Recently, zkSNACKs also restricted access to the wallet for users from the US in response to new regulatory requirements. Support for CoinJoin in Wasabi Wallet was an important feature for users looking to conceal the details of their transactions.
Rising pressure on privacy-focused services
In recent months, US authorities have intensified their stance towards cryptocurrency services related to privacy. The founders of the Samourai Wallet, Keonna Rodriguez and William Lonergan Hill, were arrested on money laundering charges, facing up to 25 years in prison. Servers belonging to Samourai were seized during the investigation.
According to the charges, Samourai Wallet had been earning commission income from transactions associated with hackers and darknet marketplaces over the past decade. Rodriguez denies the charges, while Hill is awaiting extradition from Portugal.
Furthermore, the FBI warned citizens to avoid using crypto services without MSB licenses and proper identification systems, as funds related to illegal activities could be confiscated.
