So, you’ve used the bitcoin mixing service Samourai Wallet. Its founders have been arrested, its domain is seized.
In financial transactions, adherence to the law is paramount. Whether it’s evading taxes, laundering illicit funds, or aiding others in illegal activities, the consequences of breaking the law can be severe.
One area of legal scrutiny involves cash-like reporting requirements, which encompass various thresholds and regulations. For instance, businesses in the US must file Form 1099 for any worker paid over a certain amount annually, with the threshold recently increasing to $5,000. Additionally, transactions exceeding $10,000 often trigger reporting obligations under Form 8300.
While the legality of platforms like Samourai Wallet, a coin mixer, is a complex topic, compliance with the law should always be a priority.
How to stay private
Moving forward, individuals seeking to maintain privacy in their transactions face a changing landscape. With the closure of services like Samourai Wallet and the suspension of others, such as Sparrow Wallet’s integration with Whirlpool coin mixer, users must explore alternative options.
Francis Pouliot, founder of Bull Bitcoin and a proponent of privacy, suggests a meticulous approach to disentangling one’s bitcoin wallet from Samourai’s defunct service. His recommendations involve creating multiple wallets using Wasabi, a European coin mixing service, and transferring bitcoin balances to unique Wasabi wallets. Subsequently, initiating CoinJoin or Join Market transactions can help anonymize the bitcoins from these wallets.
By diligently following these steps, Pouliot believes individuals can effectively safeguard their privacy while navigating the evolving landscape of digital currency transactions.