CryptoQuant CEO Shows Support for Crypto Mixing, Asserts its Legality
Jimmy Aki
Updated: April 26, 2024 16:34 EDT | 1 min read
Ki Young Ju, the founder and CEO of CryptoQuant, has expressed his support for crypto mixing, stating that these activities are not illegal. His statement comes in the wake of the arrest of Samourai Wallet’s founders, causing concern within the crypto community regarding the US government’s aggressive crackdown on the crypto industry.
CryptoQuant CEO Raises Concerns about DOJ’s Stance on Privacy-Focused 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 are each facing charges of conspiracy to commit money laundering and conspiracy to operate an unlicensed money-transmitting business.
Ki Young Ju has voiced his concern about the arrest, emphasizing the importance of privacy in web3. “Privacy is a fundamental principle of Bitcoin. Mixing itself is not a crime,” he wrote. “Even crypto exchanges use mixing to protect user privacy. It’s like punishing the inventor of the knife instead of the one who uses it.”
Edward Snowden, the notorious NSA whistleblower, echoed similar sentiments, criticizing the arrest of Samourai Wallet’s founders and advocating for financial privacy to be the default.
The DOJ’s announcement accuses Rodriguez and Hill of running a crypto mixing service that allegedly laundered over $100 million from illicit dark web markets. Prosecutors claim that Samourai Wallet facilitated approximately $2 billion in illegal transactions since its establishment in 2015.
It was also revealed that the duo allegedly earned around $4.5 million in fees from their mixing services on Samourai Wallet, which offered different pool fees and various features.
Crackdown on Crypto Mixing Services and Similar Privacy Technologies
US regulators have consistently targeted privacy-enhancing technologies like crypto mixers. In 2023, the DOJ charged the developers of Tornado Cash, a 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, including smart-contract-driven privacy tools. The law enforcement agency has urged citizens to only use registered Cryptocurrency Money Services Businesses that comply with existing Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.
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