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zkSNACKs Exits U.S Market Amid Ongoing Regulatory Issues

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zkSNACKs Exits U.S Market Amid Ongoing Regulatory Issues

  • zkSNACKs has begun denying access to its services to those residing in the U.S. 
  • The recent move comes on the backdrop of the arrest of co-founders of Samourai Wallet.

The zkSNACKs platform is now inaccessible to users in the US due to regulatory issues. The developer of the privacy-enhancing Bitcoin wallet Wasabi Wallet, zkSNACKs, has begun denying access to its services to those residing in the United States.

Some users are unable to access the zkSNACKs website, which prevents them from downloading and using Wasabi Wallet and any associated services, including RPC interfaces and APIs. The platform implemented an IP address firewall to do this.

Increasing Regulatory Scrutiny

Though the developer remained mum on the subject, rumors have circulated that the two founders of Samourai were arrested around the same time as the policy change and retraction.

Moreover, Keonne Rodriguez and William Lonergan Hill, co-founders of the cryptocurrency mixing service Samourai Wallet, were accused by the United States Department of Justice (DOJ) of laundering $100 million.

Furthermore, according to the legal measures taken against the duo, a maximum of 20 years in jail is conceivable for the conspiracy to conduct money laundering accusation and up to five years for the charge of running an unregistered money transmitting company.

The Samourai Wallet is supposedly a Bitcoin (BTC) wallet that allows users to transact in a more anonymous manner. But the watchdog thinks the business was all an elaborate ruse to launder money on a grand scale. Also, two Samourai services, Whirlpool and Ricochet, have processed almost 80,000 BTC, accumulating fees of about $4.5 million.

In a similar vein, the creators of the widely used cryptocurrency mixer Tornado Cash were arrested on charges of complicity in the platform’s illicit operations. Defending themselves in court, they asked for the allegations against them to be dropped.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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