2025-04-20 03:24

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zkSNACKs withdraws from U.S market due to continuing regulatory challenges

zkSNACKs is beginning to refuse access to its services for US residents. This recent move stems from the co-founder of Samourai Wallet being arrested. Due to regulatory concerns, the zkSNACKs platform is now inaccessible to users in the United States. zkSNACKs is the developer of Wasabi Wallet, a privacy-focused Bitcoin wallet.

Some users are unable to access zkSNACKs’ website, preventing them from downloading and using Wasabi Wallet, as well as any related services such as RPC interfaces and APIs. This restriction is enforced through IP address firewalls.

Despite developers remaining silent on the matter, there are rumors that both founders of Samourai were arrested amidst policy changes and withdrawals. Additionally, Keonne Rodriguez and William Lonergan Hill, co-founders of the cryptocurrency mixing service Samourai Wallet, have been charged by the US Department of Justice with laundering $100 million.

Moreover, the conspiracy to launder charges against these individuals carries a maximum sentence of 20 years in prison, while charges of operating an unregistered money transmitting business could lead to a maximum sentence of 5 years in prison.

Samourai Wallet is reportedly a Bitcoin (BTC) wallet allowing users to transact in a more anonymous manner. However, regulatory authorities view this business as an elaborate money laundering scheme. Furthermore, Samourai’s services Whirlpool and Ricochet have reportedly handled nearly 80,000 BTC, generating around $4.5 million in fees.

Similarly, the creators of the widely-used cryptocurrency mixer Tornado Cash have been arrested for allegedly engaging in illegal operations on the platform. They have defended themselves in court, seeking dismissal of the charges.

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