CryptoQuant CEO Ki Young Ju has expressed his support for the founders of Samourai Wallet following their indictment by the U.S. Department of Justice for allegedly operating a crypto mixing service involved in laundering nearly $100 million. Ju has defended the privacy-protecting role of the crypto mixer and disputed the charges brought against the founders.

In a recent statement, Ju emphasized that privacy is a fundamental value of Bitcoin and mixing itself is not inherently illegal. He compared the situation to the use of a knife, where the intent behind the tool determines its legality. Ju stated, “It’s like punishing the inventor of the knife instead of the one who uses it.”

The DoJ has accused the Samourai Wallet founders, Keonne Rodriguez and William Lonergan Hill, of facilitating over $100 million in transactions linked to illicit activities. Since its establishment in 2015, the service is said to have processed around $2 billion in illicit transactions, generating approximately $4.5 million in fees.

Recent developments include the arrest of Rodriguez and the detention of Hill, with actions taken to remove the Samourai Wallet website and mobile application. Evidence suggests that the service was actively marketed to individuals seeking to launder criminal proceeds, particularly in the black and grey markets.

Notable figures such as Edward Snowden and human rights advocate Lyudmyla Kozlovska have criticized the DoJ’s actions, arguing against the criminalization of privacy-enhancing technologies and their developers. Snowden emphasized the importance of financial privacy, while Kozlovska highlighted the capabilities of U.S. law enforcement to detect cryptocurrency-related financial crimes.

Additionally, the FBI issued a warning against the use of unregistered cryptocurrency money-transmitting services, advising Americans to only utilize registered Cryptocurrency Money Services Businesses that adhere to KYC and AML laws. The FBI emphasized the risks associated with using unlicensed services, especially during law enforcement actions.

Despite these developments, crypto mixer Tornado Cash reportedly laundered over $550 million in 2023, underscoring the ongoing challenges surrounding privacy and financial regulation in the cryptocurrency space.

Post Views: 6