CryptoQuant CEO Defends Legality of Cryptocurrency Mixing

In response to the arrest of Samourai Wallet founders, CryptoQuant CEO Ki Young Ju asserted the legality of digital asset mixing services.

The US DOJ has arrested pioneers in #Bitcoin privacy technology.

Privacy stands as a core value of Bitcoin. Mixing itself is not a crime. Even crypto exchanges use mixing to safeguard user privacy.

It’s like punishing the inventor of the knife instead of the one who uses it. https://t.co/S7qcqtqCJh

— Ki Young Ju (@ki_young_ju) April 25, 2024

“The US Department of Justice has arrested pioneers of Bitcoin privacy technology. Privacy is a core value of blockchain. Mixing itself is not a crime,” he wrote. 

Ju noted that even crypto exchanges use mixing to protect users. The CEO of CryptoQuant compared the accusations against crypto mixer developers to “persecuting the inventor of the knife.” 

The arrest of Samourai Wallet founders has sparked widespread concern in the crypto community. Participants fear this may signal another attempt by the US government to pressure the industry.

Former NSA and CIA employee Edward Snowden called the arrests an infringement on personal freedoms.

The Department of “Justice” has once again criminalized the developers of an app that restores financial privacy. The way to fix this it to make money private by default. Privacy must never be “exceptional,” or they will make it criminal.

— Edward Snowden (@Snowden) April 24, 2024

“The Department of Justice has once again criminalized the developers of an app that creates financial privacy. To fix this, make money private by default. Privacy must never be ‘exceptional,’ or they will criminalize it,” Snowden noted. 

According to crypto analyst Ryan Adams, the authorities are sending a hint that “no transaction will be private.” The charges against the Samourai Wallet founders could result in up to 25 years in prison, he added. 

The US is sending a message.

No transaction will be private.https://t.co/8ToyHQD7nw

— RYAN SΞAN ADAMS — rsa.eth ? (@RyanSAdams) April 24, 2024

In recent years, regulators have begun to tighten rhetoric regarding crypto mixers. Specifically, FinCEN plans to declare them “money laundering hubs” that threaten US national security. 

In March 2024, a US jury found Russian Roman Sterlingov guilty of operating the Bitcoin Fog crypto mixer and laundering over $400 million. He faces up to 20 years in prison.

Charges of money laundering and sanctions violations have also been brought against Tornado Cash co-founders Roman Storm and Roman Semenov. The former was released on bail. The latter remained free but faced restrictions.