Background
Wasabi Wallet, a privacy-focused Bitcoin wallet, has blocked US users from accessing its services indefinitely. This move follows the recent arrest of Samourai Wallet founders for alleged money laundering.
Why Did Wasabi Wallet Block US Users?
Wasabi Wallet cited “recent announcements” by US authorities as the reason for its decision. It’s believed that the arrest of Samourai Wallet founders played a role in this move.
Samourai Wallet Case
Co-founders of Samourai Wallet were arrested for allegedly running an unlicensed money-transmitting business and laundering over $100 million in criminal proceeds.
Regulatory Scrutiny
Consensys, the creator of MetaMask wallet, has also faced regulatory scrutiny from the SEC over its swap and staking features.
Phoenix Wallet Exits US Market
Phoenix Wallet, another self-custody wallet, has also announced plans to exit the US market by May 3rd, 2023, due to concerns over regulatory challenges.
Conclusion
The exodus of privacy-enhancing crypto wallets from the US highlights the regulatory uncertainty surrounding the industry.
