The recent court filing revealing that the U.S. Treasury Department’s Financial Crime Enforcement Network (FinCEN) charged the developers of Samourai Wallet with operating an unlicensed money transmitter has sparked controversy. Despite FinCEN informing DOJ prosecutors that Samourai Wallet did not require a license due to its non-custodial nature, the indictment proceeded, and this exculpatory evidence was suppressed for over a year.
Lawyers for Samourai Wallet founders Keonne Rodriguez and William Hill disclosed this information in a letter to Judge Richard Berman in the Southern District of New York on May 5, 2025. The lead prosecutor’s internal email from 2023, now revealed by the defense, stated that because Samourai Wallet does not take custody of cryptocurrency, it does not qualify as a Money Services Business.
Despite this clarification, Rodriguez and Hill were arrested in April 2024 on charges of laundering over $100 million through Samourai Wallet, which was accused of facilitating $2 billion in unlawful Bitcoin transactions. The DOJ press releases at the time portrayed the service as a hub for dark web money laundering.
The recent disclosure of FinCEN’s communication with prosecutors undermines the central charge of operating without a license. Defense attorneys argue that the government proceeded with the indictment despite being informed that Samourai Wallet was not a money transmitter.
This revelation comes at an inconvenient time following the DOJ’s issuance of new internal guidance, known as the “Blanche Memo,” which prohibits prosecutors from charging non-custodial software tools with unlicensed money transmission. The defense characterized the situation as a clear example of regulation by prosecution.
Zack Shapiro of the Bitcoin Policy Institute summarized the situation in a viral tweet, highlighting the fact that FinCEN explicitly informed prosecutors that Samourai Wallet was not a money transmitter, yet the developers were prosecuted anyway.
The trial for the developers is scheduled to begin on November 3, 2025. Meanwhile, their attorneys are seeking a hearing to address the government’s Brady violation and the potential dismissal of the case.
For more details on the court filing, the full PDF can be accessed below.