Enforcement Pressure Deepens: Mixers, Wallets, and “Transmission” Fears

[bonk]

Regulators and prosecutors continue to blur the line between privacy infrastructure and unlicensed money transmission. Tornado Cash sanctions were withdrawn in 2025, but developers still face legal fallout. Samourai Wallet’s founders received multi-year U.S. prison sentences after prosecutors tied more than $2B in BTC flows to their service. With mixers, privacy coins, and high-risk DeFi tools now grouped in the same “elevated risk” bucket, compliance desks are defaulting to aggressive de-risking — restricting deposits, delisting assets, and exiting privacy markets entirely.

[Abdul Khan]

Regulatory scrutiny on privacy tools is intensifying globally.

[Rimon Khan]

The definition of “transmission” could reshape compliance obligations.