DOJ Denies Concealing Info in Samourai Wallet Case

Federal prosecutors have refuted allegations that they had concealed crucial information in their ongoing lawsuit against the co-founders of the privacy-focused cryptocurrency mixing platform, Samourai Wallet. The defense team had asserted that the government had failed to disclose a Treasury Department opinion indicating that the platform would not require a FinCEN license.
The Department of Justice (DOJ) responded in a May 9 letter to the Manhattan federal court, asserting that all relevant communications with the Treasury’s Financial Crimes Enforcement Network (FinCEN) had been shared well in advance of the trial. Prosecutors maintained that the defendants had sufficient time—seven months—to utilize the material, negating the need for a hearing on the alleged late disclosure.
The core of the dispute revolves around an August 2023 meeting between prosecutors and FinCEN staff. During this meeting, FinCEN representatives informally conveyed to prosecutors that Samourai Wallet could not be classified as a Money Services Business (MSB) since the service does not hold custody of user deposits. However, the DOJ clarified that this was an informal, non-binding opinion from individual staff members, not an official agency determination. FinCEN, according to the DOJ, had not made a policy-level decision on the matter.
The defense, representing co-founders Keonne Rodriguez and William Hill, cited the FinCEN comments to argue that the pair had not violated any licensing laws. In April, they requested the judge to dismiss the case, referencing a memo by DOJ Deputy Attorney General Todd Blanche that advised against prosecuting mixers for unintentional regulatory violations. Prosecutors, however, downplayed the memo's significance, stating that it lacks legal binding authority and cannot be used to halt the prosecution of the defendants.
Rodriguez and Hill were indicted in February 2024 on charges of conspiracy to operate an unlicensed money transmitting business and money laundering. Both have pleaded not guilty. The outcome of the defense’s suppression motions will likely influence the direction of the case as it progresses toward trial.

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