zkSNACKs has started blocking access to its services for U.S. residents, with the recent development linked to issues surrounding the co-founders of Samourai Wallet. The privacy-focused Bitcoin wallet developer, zkSNACKs, is now restricting U.S. users from utilizing its services due to regulatory hurdles.

Numerous users are encountering difficulties accessing the zkSNACKs website, hampering their ability to download and utilize Wasabi Wallet and its associated features like RPC interfaces and APIs. The platform has implemented an IP address firewall to enforce this measure.

Escalating Regulatory Pressures

While zkSNACKs has not provided official statements on the matter, speculations have emerged suggesting that the timing of the policy change coincided with the reported arrests of the Samourai founders. The two co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, were allegedly arrested by the U.S. Department of Justice over accusations of money laundering amounting to $100 million.

In light of the legal actions taken against them, the duo faces potential jail sentences of up to 20 years for the alleged money laundering scheme and up to five years for operating an unregistered money transmitting service. Samourai Wallet, known for its Bitcoin anonymity features, has faced allegations of running a money laundering operation through its services like Whirlpool and Ricochet, which have reportedly processed nearly 80,000 BTC and generated around $4.5 million in fees.

Similarly, the creators of Tornado Cash, a popular cryptocurrency mixing service, have also faced arrests for alleged involvement in unlawful activities. In response, they have sought to challenge the accusations and have petitioned for the charges against them to be dismissed in court.