Amidst concerns sparked by the recent arrest of Samourai Wallet founders, CryptoQuant CEO Ki Young Ju has made a resounding statement: crypto mixing services are not illegal.

In response to the arrest of the Samourai Wallet founders, Ki Young Ju emphasized the fundamental value of privacy in Bitcoin. In an April 25 post on X, he asserted that mixing, a practice used to enhance privacy in cryptocurrency transactions, is not inherently criminal. Drawing an analogy to everyday tools, he likened punishing mixing service providers to blaming the inventor of a knife instead of those who wield it.

The arrest of Samourai Wallet CEO Keonne Rodriguez and CTO William Hill, each facing charges related to money laundering and operating an unlicensed money transmitting business, sent shockwaves through the crypto community. Many feared it signified a broader crackdown by U.S. authorities on the industry.

NSA whistleblower Edward Snowden denounced the arrests as an assault on financial privacy, urging for privacy to be the default in financial transactions to prevent such infringements.

The U.S. Department of Justice alleges that Samourai Wallet facilitated unlawful transactions exceeding $2 billion, including over $100 million in money laundering activities associated with illegal dark web markets.

Crypto analyst Ryan Adams echoed concerns, highlighting the severity of the charges and the potential implications for financial privacy. He warned that such actions send a clear message that no transaction will remain private, imposing a chilling effect on developers and users alike.

This isn't the first instance of authorities targeting privacy-focused technologies like crypto mixers. In August 2023, the DOJ charged developers of Tornado Cash with money laundering and operating an unlicensed money transfer business. The arrests came after the U.S. Treasury sanctioned Tornado Cash for alleged involvement in laundering over a billion dollars of crypto for the North Korean Lazarus Group.