May 19, 2022

Wasabi Wallet’s CoinJoin Will Not Serve Blacklisted UTXOs. Samourai Responds

5 min read

The competition between Wasabi and Samourai wallets rages on. That should not be the headline, however. This story has to do with personal privacy, censorship, and regulatory pressure. Everything started with Wasabi’s easy statement, “The zkSNACKs organizer will begin declining certain UTXOs from signing up to coinjoins.” Translation: the business that runs the centralized planner that arranges CoinJoin deals will not let tainted bitcoin take part in the service.

Every time somebody invests bitcoin, the network develops a UTXO. The acronym stands for Unspent Transaction Output. A few of them are blacklisted, thought to be tied to unlawful activities. Nevertheless, this appears more Russia-related, although none of the individuals ever mentioned the embargo. The important things is, some UTXOs are polluted.

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In the replies, a pseudonymous user asked them if they were going to report suspicious UTXOs. A Wasabi developer responded to, “No. We are attempting to secure the company and the task by lessening the amount of these hackers and fraudsters using the planner and getting us in difficulty. This ought to remain in the rights of the company to do however believe me, none people more than happy about this.” However, they did it.