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As the U.S. government intensifies its focus on crypto mixers, Edward Snowden, the renowned whistleblower and advocate for cryptocurrencies, took to X on Thursday to encourage Bitcoin developers to emphasize privacy. He indicated that there is limited time left to integrate privacy solutions at the protocol level.
Edward Snowden Alerts on Urgency for Bitcoin Privacy
“I’ve been cautioning Bitcoin developers for a decade that privacy must be ensured at the protocol level,” Snowden stated on X. “This is the ultimate warning. The clock is ticking.”
I’ve been cautioning Bitcoin developers for a decade that privacy must be ensured at the protocol level. This is the ultimate warning. The clock is ticking. https://t.co/r7w7gdrHRp
— Edward Snowden (@Snowden) May 2, 2024
Snowden’s post on X, which garnered over 8,400 likes, was a response to Wasabi Wallet’s announcement that its developer, zkSNACKs, would officially discontinue its Coinjoin service due to insufficient regulatory clarity in the U.S.
“This decision was made after thorough consideration and with a heavy heart,” a statement from ZkSNACKs noted. “Throughout our history, we have consistently sought to operate under legal clarity. At this juncture, we need to regain more certainty before proceeding.”
The U.S. Intensifies Actions Against Crypto Mixers
The shutdown of the crypto mixer, a method intended to obscure the origins of crypto transactions to make them more difficult to trace, occurs as the U.S. is tightening its grip on companies providing this service.
Last year, the U.S. government charged the founders of the crypto mixer Tornado Cash with money laundering, operating an unlicensed money transmitting service, and evading sanctions.
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U.S. prosecutors claim that the crypto mixer “laundered hundreds of millions of dollars for the Lazarus Group,” a state-sponsored hacking organization from North Korea.
The Department of Justice (DOJ) also apprehended the founders of the crypto mixer Samourai Wallet last month on similar allegations, raising concerns within the crypto community that the government might categorize self-custody wallets as unregistered money-transmitting entities.
If this occurs, it could lead to increased regulatory enforcement actions against non-custodial crypto services overall.
Snowden criticized the DOJ’s rigorous legal measures against the Samourai Wallet founders, reiterating the necessity to enhance the privacy of cryptocurrencies.
The Department of “Justice” has once again criminalized the developers of an app that restores financial privacy. The way to resolve this is 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 restores financial privacy,” Snowden remarked. “The solution is to make money private by default. Privacy must never be ‘exceptional,’ or they will make it criminal.”
Snowden is well-acquainted with privacy matters. In 2013, the former computer contractor notoriously leaked highly classified information from the National Security Agency (NSA).
The whistleblower has consistently defended digital assets and recently referred to Bitcoin as “the most significant monetary advancement since the inception of coinage.” His warning underscores the repercussions of inaction as regulatory pressures escalate.
The post Edward Snowden Warns “The Clock Is Ticking” for Bitcoin Privacy appeared first on Cryptonews.
