Samourai Wallet, a popular crypto mixer, has found itself in a legal battle with federal prosecutors over concealed information that could have cleared the company of charges. The wallet’s lawyers recently revealed that prosecutors were informed by officials from the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) that Samourai Wallet did not require a license to operate.
This crucial information was only disclosed by prosecutors on April 1, 2025, despite being made aware of it months before filing charges against Samourai co-founders Keonne Rodriguez and William Hill. The duo was accused of operating an unlicensed money transmitting business and money laundering conspiracy related to the wallet’s mixing service.
FinCEN had explicitly stated to prosecutors that non-custodial software like Samourai Wallet, which does not hold custody of cryptocurrencies, did not qualify as a “money services business” under their existing guidance. However, prosecutors decided to move forward with the charges, alleging that Samourai had functional control over the cryptocurrency despite not holding the private keys to any stored assets.
In response, Samourai’s lawyers are demanding a hearing to investigate the delayed disclosure of vital information and are calling for the case to be dismissed. They argue that the charges were brought without fair notice, and the company had acted in good faith based on the available guidance at the time.
The defense team also pointed to a recent memo from Deputy Attorney General Todd Blanche, stating that the Justice Department would no longer prosecute crypto mixers like Samourai for regulatory violations. This memo, issued on April 7, 2025, prompted the defense to demand a dismissal of the case, citing FinCEN’s guidance that Samourai was not a money transmitter and therefore could not be prosecuted for lacking a license.
The outcome of the hearing could have significant implications for the broader industry, especially 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 and impact their classification under US financial laws.
Overall, the legal battle between Samourai Wallet and federal prosecutors highlights the complexities and challenges faced by companies operating in the cryptocurrency space. It underscores the importance of clear regulatory guidance and the need for transparency in legal proceedings to ensure a fair and just outcome for all parties involved.