ZkSNACKs to sunset coinjoin anonymizing service amid US coin mixer crackdown

ZkSNACKs is discontinuing its Coinjoin service, which helps anonymize crypto transactions, starting June 1.

The wallet developer is withdrawing support for transaction privacy service Coinjoin amid mounting pressure from law enforcement as US regulators and authorities crack down on coin mixers and other tools that obscure crypto transactions. The closure comes shortly after authorities arrested the co-founders of Samurai Wallet, which is also suspected of participating.

So-called coin mixers obscure the origin and destination of crypto transactions, making it difficult for international authorities to identify dirty money laundering. Although Coinjoin bills its tools as more complex and entirely different from coin mixers, the technology is used to the same effect as traditional mixing services.

ZkSNACKs’ closure of its privacy-focused transaction tool follows other steps the project has taken to limit its legal liability in the United States. Last week, ZkSNACKs blocked access to its Wasabi Wallet for US citizens and residents.

The discontinuation of legally ambiguous products by crypto companies in the US underlines growing concerns about authorities’ hostility towards some cryptocurrency services in the US. Last year, US law enforcement arrested Tornado Cash developer Roman Storm for money laundering and conspiracy fraud related to his platform’s token. mixing services.

UPDATE: Adds nuance to the article and acknowledges Coinjoin’s claims that its offering is different from that of a traditional coin mixing service. (4:54 PM ET)