Zksnacks Bars US Users from Wasabi Wallet in Wake of Samourai Indictment

In a decisive move, Zksnacks announced on Saturday that it will block all U.S. residents and citizens from accessing its bitcoin mixer, Wasabi Wallet. This policy change comes as U.S. authorities intensify their crackdown on unregulated crypto activities, spotlighting the recent indictment of Samourai Wallet founders.

Wasabi Wallet Withdraws from U.S. Market to Avoid Regulatory Fallout

The new measure by Zksnacks effectively bans U.S. users from its websites and services, including downloading and utilizing Wasabi Wallet and related APIs. Announced via an official statement, this step was taken “in light of recent announcements by U.S. authorities” and involves an IP address blockade that prevents access to several key Zksnacks domains such as wasabiwallet.io and zksnacks.com. This sweeping prohibition underscores a growing trend of crypto services retracting from the U.S. market amidst increasing regulatory pressures.

In tandem with the operational shutdown for U.S. users, Zksnacks’ decision aligns closely with the U.S. Department of Justice’s recent actions against Samourai Wallet. The latter faced charges of operating an unlicensed money transmitting business and laundering over $100 million. The crackdown has evidently cast a long shadow, prompting other crypto entities like Zksnacks to preemptively adjust their operational policies to avoid similar legal entanglements. Lightning Network-centric Phoenix Wallet has also decided to stop serving U.S. residents, according to its parent firm Acinq.

Zksnacks‘ stern approach reflects a broader industry pivot as cryptocurrency exchanges that have been sued reassess their compliance strategies in light of escalating enforcement from U.S. regulators. The exclusion of U.S. residents and citizens from accessing Wasabi Wallet is part of a defensive maneuver aimed at mitigating potential legal risks. Meanwhile, the crypto community and stakeholders are closely watching how these regulatory developments will shape the future landscape of cryptocurrency usage and innovation within the U.S.