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Home»Taxes & Regulation»Crypto Advocacy Groups Urge Dismissal of Case Against Bitcoin Mixer Samourai
Taxes & Regulation

Crypto Advocacy Groups Urge Dismissal of Case Against Bitcoin Mixer Samourai

June 10, 2025No Comments3 Mins Read
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The fight for privacy in financial transactions continues as two crypto advocacy groups, along with other organizations, push for the dismissal of the case against Samourai Wallet, a Bitcoin mixer charged with operating as an illegal money transmitter. Despite their amicus curiae briefs being denied by a federal judge, the Blockchain Association, Coin Center, the DeFi Education Fund, and the Bitcoin Policy Institute stand by their argument that Samourai Wallet was simply facilitating online financial transactions without breaking U.S. law.

The arrest of Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill in April 2024 and the subsequent shutdown of the website by law enforcement raised questions about the legality of their actions. The U.S. Department of Justice claims that the app was an unlicensed money transmitting business used by criminals. However, the advocacy groups believe that the developers were merely providing a service that allowed users to mask their previous crypto transactions, similar to using cash for everyday transactions.

The crux of the argument lies in the interpretation of money transmitting laws by the government. The advocacy groups maintain that software developers who do not control user funds should not be prosecuted as money transmitters. They point to guidance from the Financial Crimes Enforcement Network (FinCEN) that entities must have total independent control over the value to be considered money transmitters. The defendants in the case only developed the software used by others to transfer funds and did not handle the money themselves.

Coin Center’s executive director Peter Van Valkenburgh emphasized that operating a coinjoin server, as the defendants did, does not constitute control over user funds according to FinCEN’s 2019 guidance. Lawyers for Rodriguez and Lonergan Hill have filed paperwork seeking the dismissal of the case, arguing that users of the app always maintained control over their Bitcoin.

See also  Dutch Neobank Bunq Launches Crypto Trading in Six Nations, Plans EU-Wide Expansion

The case has drawn significant attention from politicians and industry players, with America’s largest crypto exchange, Coinbase, supporting a lawsuit against the banning of the Ethereum-based Tornado Cash in 2022. The U.S. Treasury recently delisted Tornado Cash from its sanctions list, and a federal court has permanently barred the reimposition of sanctions on the platform.

In a landscape where privacy and control over financial transactions are increasingly important, the outcome of the Samourai Wallet case could have far-reaching implications for the cryptocurrency industry. As the legal battle unfolds, the advocacy groups are committed to defending the rights of software developers and preserving the privacy of individuals engaging in crypto transactions.

advocacy Bitcoin case Crypto dismissal Groups Mixer Samourai Urge
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