Altcoins

Wasabi Wallet and Phoenix Exit US Amid Crypto Wallet Crackdown

In response to mounting regulatory pressure, Wasabi Wallet and Phoenix have ceased operations for customers in the United States. The companies behind these wallets, zkSNACKs and ACINQ respectively, announced the suspensions following recent actions taken by U.S. authorities against similar cryptocurrency services.

zkSNACKs has taken proactive measures to block access to its services from U.S. IP addresses, including Wasabi Wallet. Meanwhile, ACINQ intends to remove Phoenix Wallet from U.S. application stores by May 3.

These decisions underscore the companies’ efforts to comply with potential regulations that could classify self-custody wallets as money services businesses, subjecting them to stringent regulatory oversight.

The regulatory crackdown on cryptocurrency services intensified following the arrest of two individuals associated with Samourai Wallet on charges of money laundering, including funds derived from illicit sources such as the Silk Road marketplace.

The U.S. government’s enforcement actions against Samourai Wallet led to the seizure of its web servers and domain, along with the removal of its app from the Google Play Store in the U.S.

Keonne Rodriguez, co-founder of Samourai Wallet, was granted release on a US$1 million bond after pleading not guilty to charges of money laundering and operating an unlicensed money-transmitting business at the U.S. District Court for the Southern District of New York.

Featured Image: Freepik

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