US Crackdown on Samourai Wallet Sparks Call for Crypto Industry to Protect Privacy

The recent crackdown on Samourai Wallet, a popular Bitcoin wallet with a built-in crypto mixer, has sparked outrage among crypto privacy advocates. The Department of Justice arrested the founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, on charges of money laundering and operating an unlicensed money transmitting business.

In response to the arrests, advocates are calling on the crypto industry to rally and protect people’s privacy. Alan Scott, a contributor to the Railgun Privacy Project, emphasized the importance of safeguarding privacy tools for ordinary citizens. The crackdown on Samourai Wallet comes after the founders seemingly welcomed users looking to evade US sanctions, which may have exacerbated the situation.

The arrest of the Samourai Wallet founders is part of a larger trend of enforcement actions targeting tools that help crypto users hide their identities and transaction histories. The European Parliament recently voted to ban crypto mixers, following similar actions against Tornado Cash developers in The Netherlands.

According to security researcher Mikko Ohtamaa, the centralised components of Samourai Wallet’s Whirlpool make it easier for authorities to shut down mixers and bring money laundering charges against their creators. Ohtamaa argues that regulators should focus their anti-money laundering efforts on centralised exchanges, where the majority of illicit activities occur.

As the crypto industry grapples with increased regulatory scrutiny, the debate over the role of mixers and privacy protocols in combating money laundering continues. Stay tuned for more updates on this developing story.