ZkSNACKs, developer of privacy-friendly solutions Bitcoin Wallet Wasabi Wallet has announced that users in the United States will no longer be able to access its products and platforms until further notice. The move has sparked some interesting discussion and speculation within the crypto community, with many debating its connection to the recent arrest of the Samourai Wallet founders.
Why Wasabi Wallet Blocked US Users?
On Saturday, April 27, zkSNACKs was revealed via a blog post that citizens and residents of the United States will be prohibited from visiting its websites and using the Wasabi Wallet indefinitely. The software company will also disable other services and products, such as APIs and RPC interfaces.
The statement read:
“United States” refers to “the United States” and includes the various states of the United States and associated territories. If you are a United States citizen or resident of the United States, you are not authorized to visit the aforementioned sites, download Wasabi Wallet or use the Wasabi Wallet coinjoin feature. This includes whether you are a permanent resident of the United States or a person holding a United States passport.
In the blog post, zkSNACKs highlighted “recent announcements” from US authorities as the main reason for the decision. Although it is difficult to determine exactly which announcement the company was referring to, its exit from US markets is believed to have been prompted by the recent arrest of the founders of Samourai Wallet, a privacy-focused company.
As reported by BitcoinistSamourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, were arrested by US law enforcement for allegedly running an unlicensed money transmitting business and conspiring to launder money. The two men were indicted for facilitating the laundering of more than $100 million in criminal proceeds, including funds from the Silk Road and the Hydra market.
Consensys, creator of the MetaMask wallet, also faced regulatory control from the United States Securities and Exchange Commission (SEC) in recent weeks. The financial watchdog appears to be targeting specific wallet features in MetaMask, such as its trading and staking features.
Phoenix Wallet leaves the US market
ACINQ’s Phoenix Wallet also recently revealed plans to exit the US market by the following month. The wallet provider has asked users in the United States to withdraw their assets and empty their wallets by May 3, 2023.
ACINQ wrote in a post on:
Recent announcements from US authorities cast doubt on whether self-custodial wallet providers, Lightning service providers or even Lightning nodes could be considered money services businesses and regulated as such.
Source: Phoenix Wallet/X
The exodus of these self-custodial crypto wallets and projects from the United States is only growing highlights regulatory challenges and instability surrounding the cryptocurrency industry and privacy-enhancing technologies.
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