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Prosecutors Deny Evidence Suppression in Samourai Wallet Case

Coin WorldMonday, May 12, 2025 2:42 am ET

1min read

Federal prosecutors have denied allegations that they suppressed evidence in the case against the co-founders of the crypto mixing service Samourai Wallet. In a letter to a Manhattan federal court, prosecutors asserted that they had disclosed all relevant communications with the Treasury Department's Financial Crimes Enforcement Network (FinCEN) well within the required timeframes. The defendants, Keonne Rodriguez and William Hill, had requested a hearing, claiming that prosecutors had delayed disclosing that FinCEN representatives had informed them six months prior to the charges that Samourai Wallet did not qualify as a "Money Services Business" requiring a FinCEN license.

Prosecutors argued that they had acted in good faith by disclosing the contents of an informal conversation with FinCEN staff. They emphasized that the comments made by FinCEN representatives were individual opinions and not official determinations. The prosecutors also noted that FinCEN staff did not have a definitive stance on whether Samourai Wallet would need to register as a money transmitter under their regulations.

The co-founders of Samourai Wallet had previously attempted to dismiss the case, citing a memo from Deputy Attorney General Todd Blanche that stated the Justice Department would not prosecute crypto mixers for unwitting violations of regulations. However, prosecutors countered that the memo should not be considered by the court, as it explicitly stated that it could not be relied upon to create any rights or benefits against the US or its departments.

The case against Rodriguez and Hill, who have both pleaded not guilty, revolves around charges of conspiracy to operate an unlicensed money transmitting business and money laundering conspiracy. The prosecutors' denial of late disclosure of evidence underscores their stance that they have complied with all legal requirements and that the defendants have had ample time to prepare for their defense. The court's decision on the defendants' request for a hearing will be crucial in determining the next steps in this high-profile case.

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