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Samurai Wallet developer sentenced to prison for money laundering... Strengthening regulations on cryptocurrency mixers.
Source: DigitalToday Original Title: Samurai Wallet Developer Sentenced to Imprisonment for Money Laundering… Strengthening Regulations on Cryptocurrency Mixers Original Link:
The co-founders of the Bitcoin privacy wallet 'Samurai Wallet' have been sentenced to prison for money laundering charges. The U.S. Department of Justice stated that they received sentences of 4 years and 5 years respectively for allegedly assisting in illegal money laundering.
According to blockchain media, this ruling is interpreted as a signal for strengthening regulations on cryptocurrency privacy technologies.
The U.S. Department of Justice has claimed that the Samurai Wallet supported illegal money laundering through the Bitcoin mixing service 'CoinJoin'. This wallet operated by pooling users' funds to enhance anonymity, and the court deemed it an 'unauthorized money transmission service'. In response, the U.S. prosecutor emphasized that “attempts to launder illegal funds while evading the law will be punished.”
The Samurai Wallet side claimed that the wallet operates in a non-custodial manner with no legal liability, but the court did not accept this. According to the ruling, all coinjoin transactions were coordinated through Samurai servers, which was deemed a violation of FinCEN regulations. This case proceeded after the two founders were released on a $1 million bail following their arrest in April last year, and they recently pleaded guilty.
This ruling suggests a tightening of regulations on decentralized cryptocurrency privacy technologies. The U.S. Department of Justice charged the developer of Tornado Cash last year with similar allegations, and he recently received a guilty verdict. However, the U.S. Department of Justice has stated that merely writing code is not a crime, indicating that debates on the future direction of cryptocurrency regulation are likely to continue.