Samourai Wallet’s lawyers have accused federal prosecutors of concealing vital information that could have cleared the crypto mixer of the charges it faced.
In a May 5 letter to a Manhattan federal court, the attorneys for Samourai co-founders Keonne Rodriguez and William Hill revealed that prosecutors had been informed by officials from the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) months before the charges were filed.
FinCEN had reportedly told prosecutors that Samourai Wallet did not need a license to operate.
“Shockingly, six months later, the same prosecutors criminally charged Keonne Rodriguez and William Hill with operating just such a business without a FinCEN license,” the lawyers noted in the letter. The disclosure came after a year of suppression, with prosecutors only revealing the information on April 1, 2025, despite a legal requirement to share it months earlier.
Samourai Wallet Founders Were Arrested Despite FinCEN’s Clear Stance on Legal Status
Rodriguez and Hill were charged in Feb. 2024 with conspiracy to operate an unlicensed money transmitting business and money laundering conspiracy. The charges were unsealed and the pair arrested in April. The allegations stem from Samourai’s mixing service, which allegedly helped launder over $100m through over $2b in illegal transactions.
Prosecutors claimed the service aided in transactions involving black market dealings and scammers.
The defense team pointed out that FinCEN had informed prosecutors that Samourai Wallet, which does not hold custody of cryptocurrencies, did not qualify as a “money services business” under existing guidance.
Despite FinCEN’s Position, Prosecutors Push Forward with Charges Against Samourai Wallet
This information came after a conversation between prosecutors and FinCEN officials, including Kevin O’Connor and Lorena Valente.
They considered whether Samourai met the criteria for a money transmitter. The officials noted that Samourai did not take custody of crypto. Therefore, it does not control the private keys to any stored assets. This suggested that Samourai was not operating as a money services business.
Despite this, prosecutors proceeded with the charges, arguing that Samourai could still be accused of functional control over the cryptocurrency. However, FinCEN had not addressed this argument in their official guidance, and it was considered a weak position by the officials.
Samourai Lawyers Demand Hearing Over Delayed Disclosure and Call for Case Dismissal
Now, Samourai’s lawyers are seeking a hearing to investigate the delay in disclosure. They want to determine an appropriate remedy.
If the government resists dismissing the case, the defense will renew their request for dismissal. They argue that the charges were brought without fair notice. The defense also claims the company acted in good faith based on the available guidance at the time.
Further, the defense team pointed to a recent memo from Deputy Attorney General Todd Blanche. The memo stated that the Justice Department would no longer prosecute crypto mixers like Samourai for regulatory violations.
Issued on April 7, 2025, the memo prompted the defense to demand that the case be dismissed. They argued that, under FinCEN’s guidance, Samourai was not a money transmitter and could not be prosecuted for lacking a license.
The outcome of the hearing could impact the broader industry. It is especially important for developers of non-custodial platforms like Samourai Wallet. If successful, it could set a precedent for how crypto mixers are regulated in the future. This would particularly affect their classification under US financial laws.
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