In a letter sent to a Manhattan federal court on May 9, the prosecution stated that there was no need for the hearing requested by the defendants, adding that all significant communications with FinCEN (Financial Crimes Enforcement Network) were delivered “months in advance of pretrial motions and trial.”

“The defendants will have seven months to evaluate this information before trial. No further action is necessary,” the statement read.

Defendants Claim Critical Information Was Disclosed Late

On May 5, Samourai Wallet co-founders Keonne Rodriguez and William Hill requested a hearing, claiming that FinCEN officials had stated — six months before the charges were filed — that their service was not considered a Money Services Business (MSB) requiring a license. They argued that this information was disclosed too late by the prosecution.

However, in February 2024, prosecutors charged Rodriguez and Hill with operating an unlicensed money transmitting business and conspiracy to launder money, and arrested them in April. Both individuals have pleaded not guilty.

“It Was an Informal Conversation”

The prosecution emphasized that the conversation with Kevin O’Connor, Head of FinCEN’s Virtual Assets and Emerging Technologies Section, and Lorena Valente from the Policy Division, was “informal, individual, and conditional.”

An email sent by a prosecutor following the August 2023 meeting stated that since Samourai does not take custody of crypto assets, “it would strongly suggest that it should not be considered an MSB.” However, it was also noted that FinCEN personnel “did not have a sense of what FinCEN would decide if the matter were brought before the policy committee.”

Samourai’s lawyers argued that this conversation demonstrated that their clients were not considered money transmitters under FinCEN guidance, and therefore could not be prosecuted for operating without a license.

DOJ Memo on Crypto Mixers Also Under Debate

The defendants also referred to an internal Department of Justice memo released in April, as they filed a motion to dismiss the case. The memo stated that crypto mixing services should not be prosecuted for unintentional regulatory violations.

However, the prosecution objected to the relevance of the memo in a letter to the court, arguing that the document explicitly states that it “may not be relied upon to create any right or benefit” against the U.S. government or its departments.

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In a rule proposal released on May 1, the Treasury’s Financial Crimes Enforcement Network (FinCEN) urged US banks to terminate correspondent and payable-through account services for Huione.

Deputy Treasury Secretary Scott Bessent described Huione as the “marketplace of choice for malicious cyber actors,” accusing it of aiding the theft of billions from ordinary Americans.

$4B Laundered, USDH Highlighted

According to FinCEN, Huione laundered over $4 billion in illicit funds between August 2021 and January 2025, including at least $36 million from crypto “pig butchering scams” and $37 million directly linked to North Korean cyberattacks.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Its online service Haowang Guarantee has turned Huione into a one-stop crypto laundering hub, offering illegal goods and converting crypto to fiat currency.

FinCEN also flagged Huione’s stablecoin, the USDH (US dollar Huione), for its unfreezeable nature, which allegedly supports laundering operations.

Indirect US Bank Access and Regulatory Action

While Huione doesn’t hold direct accounts with US banks, FinCEN revealed it maintains accounts with foreign intermediaries that do, giving it indirect access to the US financial system.

The National Bank of Cambodia revoked Huione’s local banking license in March 2025, citing digital asset violations.

The proposed rule will undergo a 30-day public comment period before potentially being finalized.

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The U.S. branch of Canada-based TD Bank agreed to pay over $3 billion in fines following accusations related to money laundering, and its expansion plans in the U.S. have been restricted. This agreement, dated October 10, was made due to the bank’s failure to monitor money laundering activities by criminal organizations.

According to FinCEN’s report, more than $1 billion of TD Bank’s transfer volume was linked to two cryptocurrency companies operating in the United Kingdom and Colombia. A customer group, referred to as “Customer Group C,” allegedly operating in the finance and real estate sectors, conducted the majority of these transfers.

Over 90% of the transactions by this customer group were conducted through funds originating from a crypto exchange based in the United Kingdom. Additionally, over 60% of these transactions were transferred to a financial institution in Colombia that provides virtual asset-related services.

FinCEN noted that this customer group processed over $100 million in monthly transfers, with most of the transactions facilitating crypto trading in high-risk regions such as Colombia, China, and the Middle East.

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The post Record Fine for TD Bank: Linked to Cryptocurrency Platforms in Colombia and the United Kingdom. appeared first on Coin Engineer.