CryptoQuant CEO Supports Crypto Mixing Amid DOJ Crackdown on Privacy Technologies

CryptoQuant CEO, Ki Young Ju, has spoken out in support of crypto mixing following the arrest of Samourai Wallet’s founders by the U.S. Department of Justice. Ju argued that privacy is a fundamental principle of web3 and that mixing itself is not a crime. The arrest of the Samourai Wallet founders has raised concerns in the crypto community about the government’s crackdown on the industry.

The DOJ arrested Keonne Rodriguez and William Hill, accusing them of conspiracy to commit money laundering and operate an unlicensed money-transmitting business. Ju and infamous whistleblower Edward Snowden criticized the arrest, emphasizing the importance of financial privacy.

The DOJ alleged that Samourai Wallet’s mixing service laundered over $100 million from illicit dark web markets and facilitated $2 billion in unlawful transactions since 2015. The founders reportedly earned $4.5 million in fees from their services.

This crackdown on crypto mixing services is part of a larger trend of U.S. regulators targeting privacy-preserving technologies. In 2023, the DOJ charged the developers of Tornado Cash with similar offenses. The FBI has also warned against using unregistered cryptocurrency money-transmitting services, urging compliance with KYC and AML laws.

The debate over privacy and regulation in the crypto industry continues to heat up as authorities crack down on technologies designed to protect user anonymity. Stay tuned for further developments in this ongoing saga.