Cryptocurrency Market News: Bitcoin Trips Amid Growing Regulatory Friction
Bitcoin (BTC) slipped below $63,000 on multiple occasions last week during a volatile stretch, but was trading closer to that level again Monday. The friction between regulators and the cryptocurrency industry was heightened last week after the U.S. Department of Justice (DOJ) charged founders of a non-custodial bitcoin wallet with money laundering, while crypto firm Consensys took the Securities and Exchange Commission (SEC) to court.
On Wednesday, the U.S. DOJ filed charges against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill for their alleged roles in facilitating more than $100 million in money laundering via their crypto mixing service.
The charges, which include conspiracy to commit money laundering and operating an unlicensed money transmitting business, underscore the government's ongoing crackdown on crypto privacy tools. Last year, a similar case was filed against the developers behind Tornado Cash, a privacy-enhancing decentralized application on Ethereum.
Following the legal action, other bitcoin wallet providers have decided to leave the U.S. market. zkSNACKs, which is the creator of another privacy-preserving bitcoin wallet called Wasabi Wallet, announced it's blocking all U.S.-based users from its wallet offering.Additionally, ACINQ, which is the creator of the self-custodial, Lightning Network-enabled PhoenixWallet, has decided to remove its wallet from the U.S. market following the action taken against Samourai Wallet.
On Thursday, the Federal Bureau of Investigation (FBI) also issued a warning for consumers against the use of crypto services that may operate as unlicensed money transmitters.
In its lawsuit, Consensys is requesting that the court confirm that Ethereum’s native
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