{"id":42183,"date":"2025-05-12T16:00:49","date_gmt":"2025-05-12T13:00:49","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=42183"},"modified":"2025-05-12T14:16:34","modified_gmt":"2025-05-12T11:16:34","slug":"prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case\/","title":{"rendered":"Prosecutors Deny Allegations of Late Disclosure in Samourai Wallet Case"},"content":{"rendered":"<p class=\"\" data-start=\"77\" data-end=\"402\">U.S. federal prosecutors have denied allegations that they withheld evidence in the case against the founders of the crypto mixing service <strong data-start=\"216\" data-end=\"235\"><a href=\"https:\/\/coinengineer.net\/blog\/is-altcoin-season-coming-btc-maxi-skeptical-2025\/\">Samourai<\/a> Wallet<\/strong>. According to prosecutors, the information related to the meeting with Treasury Department officials was submitted to the court within the legally required timeframe.<\/p>\n<p class=\"\" data-start=\"404\" data-end=\"714\">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 <strong data-start=\"599\" data-end=\"648\">FinCEN (Financial Crimes Enforcement Network)<\/strong> were delivered \u201cmonths in advance of pretrial motions and trial.\u201d<\/p>\n<p class=\"\" data-start=\"716\" data-end=\"854\"><strong data-start=\"716\" data-end=\"834\">\u201cThe defendants will have seven months to evaluate this information before trial. No further action is necessary,\u201d<\/strong> the statement read.<\/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\/prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case\/#Defendants_Claim_Critical_Information_Was_Disclosed_Late\" title=\"Defendants Claim Critical Information Was Disclosed Late\">Defendants Claim Critical Information Was Disclosed Late<\/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\/prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case\/#%E2%80%9CIt_Was_an_Informal_Conversation%E2%80%9D\" title=\"\u201cIt Was an Informal Conversation\u201d\">\u201cIt Was an Informal Conversation\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case\/#DOJ_Memo_on_Crypto_Mixers_Also_Under_Debate\" title=\"DOJ Memo on Crypto Mixers Also Under Debate\">DOJ Memo on Crypto Mixers Also Under Debate<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"856\" data-end=\"916\"><span class=\"ez-toc-section\" id=\"Defendants_Claim_Critical_Information_Was_Disclosed_Late\"><\/span>Defendants Claim Critical Information Was Disclosed Late<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"918\" data-end=\"1273\">On May 5, Samourai Wallet co-founders <strong data-start=\"956\" data-end=\"993\">Keonne Rodriguez and William Hill<\/strong> requested a hearing, claiming that FinCEN officials had stated \u2014 six months before the charges were filed \u2014 that their service was <strong data-start=\"1125\" data-end=\"1175\">not considered a Money Services Business (MSB)<\/strong> requiring a license. They argued that this information was disclosed too late by the prosecution.<\/p>\n<p class=\"\" data-start=\"1275\" data-end=\"1504\">However, in February 2024, prosecutors charged Rodriguez and Hill with <strong data-start=\"1346\" data-end=\"1433\">operating an unlicensed money transmitting business and conspiracy to launder money<\/strong>, and arrested them in April. Both individuals have pleaded not guilty.<\/p>\n<h2 data-start=\"1506\" data-end=\"1543\"><span class=\"ez-toc-section\" id=\"%E2%80%9CIt_Was_an_Informal_Conversation%E2%80%9D\"><\/span>\u201cIt Was an Informal Conversation\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"1545\" data-end=\"1783\">The prosecution emphasized that the conversation with <strong data-start=\"1599\" data-end=\"1617\">Kevin O\u2019Connor<\/strong>, Head of FinCEN\u2019s Virtual Assets and Emerging Technologies Section, and <strong data-start=\"1690\" data-end=\"1708\">Lorena Valente<\/strong> from the Policy Division, was <strong data-start=\"1739\" data-end=\"1783\">\u201cinformal, individual, and conditional.\u201d<\/strong><\/p>\n<p class=\"\" data-start=\"1785\" data-end=\"2148\">An email sent by a prosecutor following the August 2023 meeting stated that since Samourai does not take custody of crypto assets, <strong data-start=\"1916\" data-end=\"1988\">\u201cit would strongly suggest that it should not be considered an MSB.\u201d<\/strong> However, it was also noted that FinCEN personnel <strong data-start=\"2038\" data-end=\"2148\">\u201cdid not have a sense of what FinCEN would decide if the matter were brought before the policy committee.\u201d<\/strong><\/p>\n<p class=\"\" data-start=\"2150\" data-end=\"2367\">Samourai\u2019s lawyers argued that this conversation demonstrated that their clients were <strong data-start=\"2236\" data-end=\"2295\">not considered money transmitters under FinCEN guidance<\/strong>, and therefore could not be prosecuted for operating without a license.<\/p>\n<h2 data-start=\"2369\" data-end=\"2416\"><span class=\"ez-toc-section\" id=\"DOJ_Memo_on_Crypto_Mixers_Also_Under_Debate\"><\/span>DOJ Memo on Crypto Mixers Also Under Debate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"2418\" data-end=\"2669\">The defendants also referred to an <strong data-start=\"2453\" data-end=\"2492\">internal Department of Justice memo<\/strong> released in April, as they filed a motion to dismiss the case. The memo stated that <strong data-start=\"2577\" data-end=\"2668\">crypto mixing services should not be prosecuted for unintentional regulatory violations<\/strong>.<\/p>\n<p class=\"\" data-start=\"2671\" data-end=\"2919\">However, the prosecution objected to the relevance of the memo in a letter to the court, arguing that the document <strong data-start=\"2786\" data-end=\"2919\" data-is-last-node=\"\">explicitly states that it \u201cmay not be relied upon to create any right or benefit\u201d against the U.S. government or its departments.<\/strong><\/p>\n<hr \/>\n<p class=\"\" data-start=\"2671\" data-end=\"2919\"><em>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 href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. federal prosecutors have denied allegations that they withheld evidence in the case against the founders of the crypto mixing service Samourai Wallet. According to prosecutors, the information related to the meeting with Treasury Department officials was submitted to the court within the legally required timeframe. In a letter sent to a Manhattan federal court<\/p>\n","protected":false},"author":29,"featured_media":34775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[5686,9003,5648,15651],"class_list":["post-42183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-department-of-justice","tag-fincen","tag-samourai-wallet","tag-u-s-federal-prosecutors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prosecutors Deny Allegations of Late Disclosure in Samourai Wallet Case - 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\/prosecutors-deny-allegations-of-late-disclosure-in-samourai-wallet-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prosecutors Deny Allegations of Late Disclosure in Samourai Wallet Case - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"U.S. federal prosecutors have denied allegations that they withheld evidence in the case against the founders of the crypto mixing service Samourai Wallet. 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