ZkSNACKs will shut down its Coinjoin service, which anonymizes crypto transactions, starting June 1.

The wallet developer is ending support for Coinjoin due to increasing pressure from law enforcement, as U.S. regulators and authorities intensify their crackdown on coin mixers and other tools that obscure crypto transactions. This decision follows the recent arrests of the co-founders of Samurai Wallet, also associated with Coinjoin.

Coin mixers obscure the origins and destinations of crypto transactions, complicating efforts for international authorities to trace illicit funds. Although Coinjoin claims its tools are more sophisticated and distinct from traditional coin mixers, they achieve similar results in hiding transaction details.

The shutdown of ZkSNACKs' privacy service is part of broader steps the project has taken to minimize legal risks in the U.S. Last week, ZkSNACKs restricted access to its Wasabi Wallet for U.S. citizens and residents.

The discontinuation of legally ambiguous products by crypto firms in the U.S. reflects increasing concerns over regulatory hostility towards certain cryptocurrency services. Last year, U.S. authorities arrested Tornado Cash developer Roman Storm on charges related to money laundering and wire fraud conspiracy for his platform’s token mixing services.