CryptoQuant CEO Shows Support for Crypto Mixing, Asserts its Legality
Jimmy Aki
Published on April 26, 2024, 16:34 EDT
Ki Young Ju, the founder and CEO of CryptoQuant, has expressed his support for crypto mixing, stating that such activities are not illegal. He made this statement in response to the arrest of Samourai Wallet’s founders, which has raised concerns within the crypto community regarding the US government’s aggressive crackdown on the crypto industry.
CryptoQuant CEO Raises Concerns About DOJ’s Position on Privacy-Driven Technologies
On April 24, the US Department of Justice (DOJ) arrested Keonne Rodriguez and William Hill, the CEO and chief technology officer of Samourai Wallet. They have been charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money-transmitting business.
Ki Young Ju expressed his concern about the arrest, emphasizing that privacy is a fundamental principle of web3. He stated, “Privacy is a core value of Bitcoin. Mixing itself is not a crime. Even crypto exchanges use mixing to protect user privacy. It’s like punishing the inventor of the knife instead of the person who uses it.”
The well-known NSA whistleblower Edward Snowden echoed similar sentiments, criticizing the arrest of Samourai Wallet’s founder and suggesting that financial privacy should be the default.
In its announcement, the DOJ accused Rodriguez and Hill of operating a crypto mixing service that allegedly laundered over $100 million from illicit dark web markets. Prosecutors claim that since its establishment in 2015, the Samourai Wallet service has facilitated approximately $2 billion in unlawful transactions.
It was also revealed that the duo allegedly earned around $4.5 million in fees from their mixing services on Samourai Wallet, which offers different features with varying pool fees.
Crackdown on Crypto Mixing Services and Similar Privacy Technologies
US regulators have consistently targeted privacy-preserving technologies like crypto mixers. In an earlier incident in 2023, the DOJ charged the developers of the Tornado Cash crypto mixing service with money laundering, sanctions violations, and operating an unlicensed money transfer business.
Meanwhile, the Federal Bureau of Investigation (FBI) has warned Americans against using unregistered cryptocurrency money-transmitting services and smart-contract-driven privacy tools. The law enforcement agency has urged citizens to only utilize registered Cryptocurrency Money Services Businesses that comply with existing Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.
Don’t forget to follow us on Google News.
