Wasabi Wallet Exits Mixing Sector as DOJ Pressure Piles on

The discontinuation will take effect in the coming month, marking the complete end of the firm’s crypto mixing service.

Bewildered man looking at his green wallet whit smoke coming out of it.
Created by Gabor Kovacs from DailyCoin
  • Coin mixer Wasabi Wallet will discontinue its conjoin coordination service.
  • The move comes amid intensifying enforcement actions from US authorities.
  • The Wasabi wallet conjoin feature suspension will impact other wallet service providers.

From Tornado Cash to Samourai Wallet, privacy-focused crypto mixers have dominated industry headlines in recent months, drawing attention to intense regulatory drama and market exits. On April 29, 2024, zkSNACKs-owned Wasabi Wallet was added to the list, announcing its exit from the United States, completely restricting user access to its services within the jurisdiction. 

Less than a week after the key decision, the firm announced the discontinuation of its coin mixing service, prompting questions about the reason behind its recent flurry of actions.

Wasabi Wallet Axes Conjoin Feature: Fear of the DOJ?

Revealed in a blog post on May 2, 2024, Wasabi Wallet’s decision comes amidst intensified enforcement actions from the Department of Justice, as the company seeks to evade potential scrutiny of its offerings by United States authorities.


According to the firm, the conjoin coordination suspension, which will take effect on June 1, 2024, aligns with its efforts to operate “under legal clarity,” echoing the concerns stated for its US market exit.

This decision was made after careful consideration and with a heavy heart. Throughout our history, we have always made efforts to operate under legal clarity. At this point, we need to regain more certainty before moving forward,” stated the blog post. 

While it will no longer offer complete privacy, the wallet emphasized that it will continue to function as a Bitcoin wallet and maintain other privacy features, such as its client-side filtering architecture, Tor integration, and custom coin selection.

Wasabi Wallet’s decision follows a series of preventive measures undertaken by other coin-mixing service providers amid increased efforts to avoid the DoJ’s line of fire.

DoJ Cracks on Crypto Mixers

In August 2023, authorities initiated legal proceedings against popular crypto mixer Tornado Cash, alleging its frequent adoption by hackers to conceal traces of their illicitly acquired funds.


The DoJ accused the firm of facilitating nearly $1 billion in illegal transactions for sanctioned organizations such as the North Korean-linked hacker group Lazarus, charging its principal co-founders, Roman Storm, and Roman Semenov, for aiding cybercrime and violating regulations.

Nearly a year later, authorities turned their attention to the Bitcoin mixer Samourai Wallet for similar charges. Alleging the facilitation of $2.1 billion in illegal transactions. On April 24, 2024, the Justice Department arrested Samourai founders Keonne Rodriguez and William Lonergan Hill, indicting them on charges of money laundering and sanctions violations.

The two Samourai Wallet founders, Keonne Rodriguez and William Longman Hill have also been arrested by the DOJ, facing a 25-year sentence each if convicted.

On the Flipside

  • Crypto mixers have been labeled as aiding terror financing, and the recent rise in geopolitical tensions, such as the Israel-Iran conflict, could be a contributing factor to the heightened crackdown on crypto mixers.
  • Following Wasabi Wallet’s announcement, hardware wallet provider Trezor, which utilized the coinjoin feature, also declared the discontinuation of its service.
  • The arrested Samourai Wallet co-founder, Keonne Rodriguez has recently pleaded not guilty to the DoJ’s charges.

Why This Matters

Wasabi Wallet’s suspension of the coinjoin coin mixing feature highlights its compliance and efforts to avoid potential legal repercussions from the Department of Justice (DoJ). However, even with the preventive measures, the firm may still be subject to enforcement if linked to previous illicit activities.

Discover the FBI’s cautions to investors as crypto mixer crackdown continues:
FBI Warns Americans as Crypto Enforcement Actions Intensify 

Indian authorities and Binance have recently busted a fraudulent crypto scheme, read more:
Binance Collaborates With Indian Authorities to Nab $10M Scam

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.