Bitcoin (BTC) and Ether (ETH) prices experienced notable declines alongside major altcoins, spurred by the news of the arrest of Samourai Wallet founders by the United States Department of Justice (DOJ). This development occurred against the backdrop of escalating tensions in the Middle East and ongoing volatility following the recent Bitcoin halving event.

On April 24, Cointelegraph reported that Keonne Rodriguez and William Hill, CEO and chief technology officer of Samourai Wallet respectively, were each charged with one count of conspiracy to commit money laundering and one count of conspiracy to operate an unlicensed money transmitting business. This announcement caused Bitcoin's price to plummet by 3.6%, dipping below key support levels to $63,710, before recovering slightly to $64,546, according to CoinMarketCap data. Similarly, Ether experienced a 2.51% drop within the same timeframe, declining further to $3,158.

The impact extended to other leading altcoins, with PEPE, SHIB, and DOGE witnessing brief declines of 6.4%, 2.7%, and 3.2% respectively. These sharp price movements triggered widespread liquidation of long positions across the crypto market, resulting in approximately $33.08 million worth of long positions liquidated for Bitcoin, $29.88 million for Ether, and around $23 million across other cryptocurrencies, as per CoinGlass data.

Moreover, the crypto market downturn occurred amid heightened geopolitical tensions in the Middle East. Reports emerged on April 24 detailing Israeli military strikes on approximately 40 locations linked to Hezbollah in Southern Lebanon. This geopolitical uncertainty added to the unease in the crypto market, exacerbating the impact of the DOJ's announcement.

Despite generally positive investor sentiment in the crypto market, as indicated by the Fear & Greed Index rising to 72, a 15-point increase from the previous week, the arrests of the Samourai Wallet founders raised concerns within the crypto community. Some analysts criticized the arrests, fearing they could signify a broader crackdown on privacy-focused projects by the US government. Notably, crypto analyst Ryan Adams highlighted the potential implications, stating that the developers face up to 25 years in prison for writing code, signaling a clear message from the US government regarding transaction privacy.

In light of these events, there is heightened scrutiny and discussion within the crypto community regarding government intervention and its impact on the future development and adoption of cryptocurrencies and related technologies.