{"id":29576,"date":"2024-09-21T16:00:47","date_gmt":"2024-09-21T13:00:47","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=29576"},"modified":"2024-09-21T11:48:02","modified_gmt":"2024-09-21T08:48:02","slug":"samourai-wallet-founder-denied-bail-amendments","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/samourai-wallet-founder-denied-bail-amendments\/","title":{"rendered":"Samourai Wallet Founder Denied Bail Amendments"},"content":{"rendered":"<p>During a Tuesday hearing in a <a href=\"https:\/\/www.nysd.uscourts.gov\/\">Southern District of New York<\/a> court, <strong>Samourai Wallet founder Keonne Rodriguez<\/strong>\u2014who was arrested in April on allegations of running an unlicensed money transmitter\u2014was rejected amendments to his bail conditions.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/samourai-wallet-founder-denied-bail-amendments\/#Defense_Seeks_Bail_Amendments\" title=\"Defense Seeks Bail Amendments\">Defense Seeks Bail Amendments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/samourai-wallet-founder-denied-bail-amendments\/#Allegations_and_Bitcoin_Privacy_Tools\" title=\"Allegations and Bitcoin Privacy Tools\">Allegations and Bitcoin Privacy Tools<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Defense_Seeks_Bail_Amendments\"><\/span>Defense Seeks Bail Amendments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In part to cover his legal bills, Rodriguez&#8217;s defense lawyers sought two changes to his bail: elimination of a home detention mandate and lessened limits on his ability to interact with cryptocurrencies.<\/p>\n<p>But considering the seriousness of Rodriguez&#8217;s offense, the possibly long sentence should he be proven guilty, and handwritten notes purportedly outlining an escape plot, prosecutors effectively claimed Rodriguez should be considered a flight risk.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Allegations_and_Bitcoin_Privacy_Tools\"><\/span>Allegations and Bitcoin Privacy Tools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Rodriguez, co-founder William Lonergan Hill, former CTO of Soie LLC., and product lead at Blockchain.com before working on <strong>Samourai<\/strong>, face money laundering allegations in relation to the development of the <strong>Samourai Wallet<\/strong>, a bitcoin-focused app with a privacy-preserving mixing tool to hide user identities. Prosecutors claim the non-custodial <strong>Samourai Wallet<\/strong> helped to enable over $2 billion in illegal activities.<\/p>\n<p>For many Bitcoin supporters, who perceive the two developers arrested during over a decade of operation as government overreach, the case has evolved into something of a cause celebre. Legal analysts specifically worry that an unfavorable decision for Rodriguez and Hill will allow authorities to target any non-custodial software based on precedent.<\/p>\n<p>Senators Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.) penned a letter in May voicing concerns over the Department of Justice&#8217;s &#8220;unprecedented interpretation&#8221; of a statute extending prohibitions against &#8220;unlicensed money transmitting businesses&#8221; given the risks possessed to &#8220;crypto asset software services&#8221; and the lack of &#8220;clear intent&#8221; from Congress.<\/p>\n<p>The senators noted that consumers of non-custodial crypto service providers retain sole possession and control of their crypto assets; hence, they cannot be categorized as money-transmitting companies. Lummis and Wyden underline that creators of autonomous software should not be responsible for the way those tools are applied.<\/p>\n<p>This is basically what Rodriguez&#8217;s counsel told the court on Tuesday\u2014that the defendant believes he did not commit a crime. For their money laundering and transmission accusations, Rodriguez and Hill each risk a 25-year maximum jail sentence.<\/p>\n<p>The continuous case against co-founders Roman Storm and Roman Semanov of Tornado Cash, who helped create and promote the Ethereum-based decentralized token tumbler, raises similar questions. Judge Katherine Polk Failla of the U.S. District Court is reviewing evidence on whether founders must keep &#8220;control&#8221; of users&#8217; crypto assets in order to be judged money transmitters.<\/p>\n<p>Though the protocol is independent, a prior decision concerning Tornado Cash co-founder Alexey Pertsev in a Dutch court found him guilty of money laundering. Roman Sterlingov, the founder of Bitcoin Fog, was found guilty in April on like allegations.<\/p>\n<p>Tuesday was the first time Rodriguez and Hill had shown up in court together since they were arrested. December 16 is the scheduled trial date.<\/p>\n<p>Rodriguez tweeted,<em> &#8220;Bitcoin isn&#8217;t about buying a latte with your mobile phone; it is about making the transactions they say you can&#8217;t make,&#8221;<\/em> around the time Samourai launched.<\/p>\n<p>&nbsp;<\/p>\n<p><em class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Telegram,\u00a0<\/strong><\/a><a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">YouTube<\/strong><\/a>,\u00a0and\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Twitter<\/strong><\/a>\u00a0channels for\u00a0<\/em><em class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">the latest\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>During a Tuesday hearing in a Southern District of New York court, Samourai Wallet founder Keonne Rodriguez\u2014who was arrested in April on allegations of running an unlicensed money transmitter\u2014was rejected amendments to his bail conditions. Defense Seeks Bail Amendments In part to cover his legal bills, Rodriguez&#8217;s defense lawyers sought two changes to his bail:<\/p>\n","protected":false},"author":6,"featured_media":29586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5747,8706,5648],"class_list":["post-29576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-keonne-rodriguez","tag-samourai","tag-samourai-wallet"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Samourai Wallet Founder Denied Bail Amendments - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/samourai-wallet-founder-denied-bail-amendments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Samourai Wallet Founder Denied Bail Amendments - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"During a Tuesday hearing in a Southern District of New York court, Samourai Wallet founder Keonne Rodriguez\u2014who was arrested in April on allegations of running an unlicensed money transmitter\u2014was rejected amendments to his bail conditions. 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