Crypto market crashes as Samourai Wallet founders are arrested

Many cryptocurrency tokens have a red day on thursday as the founders of the Samourai Wallet are facing legal action for illegal activity. The Department of Justice (DOJ) in the United States has arrested the founders and leaders of the Bitcoin (BTC) based wallet consisting of CEO Keonne Rodriguez and CTO William Hill for laundering money. Briefly after the announcement the BTC price, as well as other currencies, dropped sharply. 

 In the last 24 hours the BTC price has fallen by 3,2% to a current level of $63.750. As a result the big cryptocurrency basically cancelled out all its gains over the last seven days. The bitcoin price is currently exploring the $64.000 support level which is an important one to maintain to prevent a further crash to $62.000 or even $61.000 resulting in a potential further decrease of 5% from the current levels. 

Samourai Wallet was virtual haven for criminals

The Samourai Wallet website is officially offline as American authorities have confiscated the platform as the founders of the wallet have been arrested. Both Rodriguez and Lonergan Hill are charged with operating a total of $2 billion in unlawful transactions and facilitating over $100 million in money laundering transactions. These transactions were facilitated through illegal dark web markets. 

According to the United States Attorneys Office of the Southern District of New York the founders of Samourai Wallet basically provided criminals a virtual haven for exchanging illicit funds. 

BlackRock Bitcoin ETF sees first capital outflow

The BTC price downfall was further fueled by a large outflow of funds from the Bitcoin Spot Exchange Traded Fund (ETF) market. Past Wednesday saw a significant outflow of over $120 million, which was led by capital outflow from Grayscales GBTC fund, as data from Farside Investors shows. The ETF saw a total outflow of $130,4 million in just a single day. Surprisingly BlackRocks BTC ETF saw its first outflow of capital since its launch on January 11th. Since then the popular fund, trading under ticker IBIT, has had a 71 day inflow streak leading to a total amassed capital of over $15 billion. 

The inflow into BTC ETFs has been a predominant influence on the bitcoin price in the past months. As the market faces ongoing geopolitical tension in the Middle East a surge in uncertainty leads investors to existing some of their BTC positions.






Leave a Reply

Your email address will not be published. Required fields are marked *