Samourai Wallet Lawyers Accuse Prosecution of Evidence Suppression

Lawyers representing Samourai Wallet have accused the prosecution of suppressing critical evidence in the case against the mixing service’s co-founders, Keonne Rodriguez and William Lonergan Hill. The defense has called for a hearing to determine whether the case should be dismissed due to an alleged Brady violation.

In a court filing on Monday, Samourai Wallet’s lawyers informed Judge Richard Berman of the Southern District of New York that in August 2023, the Financial Crimes Enforcement Network (FinCEN) informed prosecutors that Samourai Wallet did not qualify as a money transmitting business and did not require a license to operate. Despite this communication, prosecutors proceeded to charge Rodriguez and Hill with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. The defense was not informed of FinCEN’s position until April 1, 2025, when prosecutors responded to a specific Brady request for exculpatory evidence.

Samourai Wallet’s lawyers argued that the prosecution’s failure to disclose this information constitutes a Brady violation, which is a violation of the defendant’s due process rights. The landmark Supreme Court case Brady v. Maryland established that the government must hand over any exculpatory or material evidence to the defense in a timely manner. The defense contends that the withheld evidence has already prejudiced Rodriguez and Hill’s case, impacting bail determinations and the court’s decision not to permit the defendants to file a motion to dismiss immediately following their arraignments.

Last month, Samourai Wallet’s lawyers requested the court to dismiss the case under the so-called “Blanche Memo,” a recent directive from U.S. Deputy Attorney General Todd Blanche to Department of Justice staff, instructing them to cease prosecuting regulatory violations involving crypto and to discontinue pursuing cases against crypto exchanges or mixers for the actions of their end users. Prosecutors met with the defense to consider the request on April 10 but have yet to reach a conclusion. If the DOJ declines to drop charges, Samourai Wallet’s lawyers plan to file a motion to dismiss the case on several grounds, including that the defendants were not money transmitters and thus could not be prosecuted for not having a license or implementing anti-money laundering controls.

The defense argued that even if the DOJ’s interpretation of the law were correct, the defendants would still be entitled to dismissal for lack of fair notice. They have spent a year under indictment and have exhausted significant portions of their life savings defending against these charges. The next hearing in the case is scheduled for July 22, 2025, at 1:00 p.m. ET.