Once upon a time, Wasabi Wallet was one of the most formidable, if not the most private wallet the Bitcoin community had to offer. It ran your bitcoins through WabiSabi, a CoinJoin protocol, and it "mixed" (if you want to call it that) your coins for you and gave you clean coins. Just like many of these mixers that you see advertised around here.
Unfortunately, Wasabi, like many other mixers and coinjoiners, had one inherent and fatal flaw - It ran a centralized coordinator. It was not decentralized at all.
This means that not only can law enforcement destroy a coordinator, but the coordinator itself can sabotage it's own users.
This is exactly what happened with Wasabi Wallet. While zkSNACKs, the owner of the coordinator, was busy preparing its draft announcing its intent to blacklist UTXOs that it doesn't like, the community was aloof of this news.
Of course, they were very angry when they found out about this, because there were no criteria for blacklisting a UTXO, not to mention the entire concept of blacklisting was unethical in the first place, so that basically meant that zkSNACKs could make up the rules on the fly for what UTXOs they would like to block.
Believe it or not, this is old news. It happened 4 years ago.
Since then, a couple of sockpuppets have taken it upon themselves to defend Wasabi of any wrongdoing, justifying harvesting your UTXO set for this purpose while decrying competing wallets doing the same. You can find these accounts on many platforms, like X and bitcointalk.
Fast forward to today, and now Wasabi announced that no American is allowed to use the Wasabi wallet or access their website.
I am sure you are shaking your head at this point thinking "but I thought only exchanges do that kind of stuff!" Well, that was the case for all KYC-verified services for a long time, but at least they had the excuse of obeying the law. Now though, even anonymous services are hiding from US users, not out of legal obligation, but out of fear. It has never been illegal for Americans to own bitcoin, even though the government wants a tax cut out of all bitcoin transactions at this point, which is not hard to see.
I actually think nopara73 (Wasabi founder) ran away from Wasabi Wallet because he saw this coming. I guess he didn't want his reputation to be further in the mud or something.
Do not use any bitcoin wallet that geoblocks its users. Bitcoin is a global, permissionles, decentralized, P2P electronic cash.