- Federal authorities shut down Samourai Wallet and arrested its developers on charges of running an illegal money transmitter.
- The developers are seeking to have the case dismissed, with support from cryptocurrency advocacy groups.
- A U.S. judge rejected requests to admit amicus briefs from these advocacy groups.
- Advocates claim the defendants only created software and did not control users’ cryptocurrency.
- The controversy follows earlier U.S. actions against other crypto-mixing services, including Tornado Cash.
Federal authorities closed down the Bitcoin mixing service Samourai Wallet in 2024, arresting developers Keonne Rodriguez and William Lonergan Hill. Prosecutors allege the pair operated the service as an “unlicensed money transmitting business,” accusing them of helping to obscure cryptocurrency transactions for criminal activity.
The defense has filed a motion to dismiss the case, arguing that the developers did not handle or control user funds. Their position is supported by organizations including the Blockchain Association, Coin Center, DeFi Education Fund, and Bitcoin Policy Institute. These groups claim that Samourai Wallet simply enabled users to enhance the privacy of their financial transactions, which they say does not breach U.S. law.
A federal judge declined this week to admit amicus briefs—documents submitted by non-parties with expertise or interest in the case—from these advocacy groups. Amanda Tuminelli of the DeFi Education Fund told Decrypt, "Privacy is normal: it’s normal for people to want to be able to make financial transactions on-chain whilst still maintaining privacy—people do that with cash every day in their regular lives."
Supporters of the wallet’s developers maintain that criminal money transmission charges should only apply to entities with total independent control over user funds. The Blockchain Association and DeFi Education Fund argue in their brief that prosecuting the software creators is outside the scope of the law. "[The government’s] interpretation of the money-transmitting laws to cover non-custodial software tools generated widespread shock and alarm in the cryptocurrency world," their court filing stated.
This legal battle follows U.S. actions against other crypto mixing services, most notably the 2022 ban on Tornado Cash, which the government claimed enabled criminals to launder over $1 billion. The Treasury later removed Tornado Cash from its sanctions list in March, and a federal court in April barred it from being re-sanctioned.
Major cryptocurrency exchanges and advocacy organizations have also challenged the government’s interpretation of money transmitter laws, saying it risks criminalizing the development of privacy-focused software tools.
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