Samourai Wallet Co-Founders Seek Dismissal After Justice Department Policy Shift

US federal prosecutors and the co-founders of the crypto mixer Samourai Wallet have requested additional time from a court to consider the potential dismissal of the case. This request comes after the Justice Department adjusted its approach to crypto enforcement. Lawyers representing Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill submitted a letter to Manhattan federal judge Richard Berman on April 28, seeking a 16-day extension to the pretrial motions schedule. This extension is intended to allow both parties to evaluate the situation without incurring unnecessary expenses while the government determines its stance.

The defense team for the Samourai executives had previously written to Acting Manhattan US Attorney Jay Clayton on April 10, requesting the dismissal of the case. This request followed a memo issued by Deputy Attorney General Todd Blanche on April 7, which effectively disbanded the Justice Department’s crypto team. The memo stated that the Department of Justice is not a digital assets regulator and would focus its efforts on prosecuting individuals who victimize digital asset investors or use digital assets in criminal activities.

During a meeting on April 24, defense counsel and prosecutors discussed the request for dismissal. The prosecutors agreed to the continuance without expressing any views on the merits of the case. The current schedule for motions in the Samourai executives' case is set for May 13, with responses due on June 10 and replies on June 24. The proposed extension would push these dates back to May 29, June 26, and July 10, respectively. The trial date, scheduled for early November, remains unaffected by this continuance.

This development is part of a broader trend where prosecutors have been dismissing crypto-related cases under the current administration's more favorable stance toward the industry. On April 9, SafeMoon CEO Braden John Karony, who faces charges of wire fraud and money laundering, cited Blanche’s directive in an attempt to have his case dismissed. Additionally, on April 28, the DeFi Education Fund petitioned the White House to drop charges against Tornado Cash co-founder Roman Storm, urging immediate action to halt what they described as the Biden-era Department of Justice’s campaign to criminalize open-source software development.