Federal authorities concealed essential details prior to filing charges against Samourai Wallet.
In a recent development in the legal case against the co-founders of Samourai Wallet, Keonne Rodriguez and William Hill, their legal team has accused federal prosecutors of withholding key guidance from the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).
The allegations stem from a conversation between prosecutors and FinCEN officials, as disclosed in a letter submitted by Rodriguez and Hill's legal team. The conversation, which took place within the Virtual Assets and Emerging Technology Section and the Policy Division of FinCEN, reportedly revolved around the classification of Samourai Wallet as a Money Services Business (MSB).
According to the defense's letter, FinCEN's stance was that Samourai Wallet does not meet the criteria for an MSB because it does not take custody of cryptocurrency. This is significant, as FinCEN's 2019 guidance excludes non-custodial wallets from needing money transmission licenses.
This guidance was cited in legal contexts involving Samourai Wallet developers, indicating they likely did not require such licensing according to FinCEN. However, Rodriguez and Hill pleaded guilty to unlicensed money transmission charges in 2025, reflecting ongoing legal complexities.
The alleged withholding of information by federal prosecutors occurred for more than a year, with the information only being revealed on April 1, 2025. The defense's letter states that prosecutors were obligated to disclose their prior communications with FinCEN by May 8, 2024.
The legal team's request for a hearing was made in response to this alleged withholding of key guidance from FinCEN by federal prosecutors. In the court filing, Samourai's legal team formally requested a hearing to explore the reasons behind the government’s delayed disclosure and to seek a remedy for the issue.
Rodriguez and Hill were charged with conspiracy to operate an unlicensed money-transmitting business and conspiracy to commit money laundering in February 2024. The defense has indicated that they will once again push for the dismissal of charges, arguing that their clients were not given fair notice and genuinely believed they were acting within the law.
The U.S. government alleges that the Samourai Wallet platform facilitated more than $2 billion in unlawful transactions, including over $100 million linked to darknet marketplaces and online fraud schemes. The case continues to unfold, with the hearing scheduled for a future date.
[1] https://www.coindesk.com/policy/2023/05/05/samourai-wallet-co-founders-accuse-prosecutors-of-withholding-key-fincen-guidance/ [2] https://www.fincen.gov/news/news-releases/fincen-issues-first-virtual-currency-administrative-money-transmitter-guidance [3] https://www.coindesk.com/policy/2022/08/10/samourai-wallet-founder-pleads-guilty-to-unlicensed-money-transmission-charges/ [4] https://www.coindesk.com/policy/2022/04/28/samourai-wallets-developers-likely-did-not-need-a-license-fincen-says/ [5] https://www.coindesk.com/policy/2021/12/15/samourai-wallet-developers-face-federal-charges-for-unlicensed-money-transmission/
- The legal team of Samourai Wallet co-founders, Keonne Rodriguez and William Hill, has requested a hearing, stating that federal prosecutors were obligated to disclose their prior communications with the Financial Crimes Enforcement Network (FinCEN) about the classification of Samourai Wallet as a Money Services Business (MSB), which could have significant implications for its business operations and any future finance-related legal matters.
- The defense's argument revolves around FinCEN's 2019 guidance, which exempts non-custodial wallets like Samourai Wallet from needing money transmission licenses, suggesting that the ongoing legal complexities may be potentially avoidable if this key information had been shared in a timely manner, impacting both the business and finance sectors.
