Deniz 
The U.S. government has granted bail to William Lonergan Hill, who was arrested in April alongside fellow Samourai Wallet co-founder Keonne Rodriguez on federal charges of money laundering and running an unlicensed money-transmitting company, although the precise terms are yet unknown.
Defense’s Argument for Hill’s Bail
According to a recent letter from Hill’s defense, the parties have agreed to bail Hill but are still split on where his time ought to be spent. The defense contends that the 65-year-old developer, who grew up in Brooklyn before going to Paris and then Portugal, should be allowed to stay in Portugal with his wife.
According to the lawsuit, first reported by the publication The Rage, Department of Justice officials would like Hill to remain in his sister’s Brooklyn basement.
Rodriguez was released on a $1 million bond after pleading not guilty to the two charges. Hill’s “extraordistically strong bail package,” according to the letter, included at least $3 million in assets.
Should the court approve Hill’s release to Portugal, that package would rise to almost $4.4 million, funded by commitments from his wife and relatives, who “all have bet their financial futures on his abiding by the terms of the bond,” the letter says.
Samourai Wallet’s Legal Controversy
The letter states that Hill intends to challenge the charges, as does his fellow founder. Hill’s attorney observes that the real trial might not take place until “deep into 2025,” given that discovery in the case is expected to be substantial, and together with many other pre-trial activities, there may not be any actual trial at all.
From legal analysis to notes of support from well-known people, Hill’s lawyer also outlines some points in support of Hill in the letter, offering a preview of the defense’s claims in the next case.
Related: Samourai Wallet Charged with Money Laundering Conspiracy
In one intriguing case, Hill’s attorney notes that Samourai Wallet was on Google’s software store from its introduction in May 2015 until April 2024, at which point Google removed the software following the arrest of the two co-founders.
Should Samourai Wallet be meant as a money-laundering tool, the defense contends that government reasoning would make Google an unindicated co-conspirator for distributing the program to the almost 4 billion Android users worldwide.
Moreover, the defense contends that, notwithstanding FinCEN’s advice at the time, the charge of conspiracy to commit money laundering relies on Samourai Wallet’s unlicensed money-transmitting status. The letter says, “If Samourai Wallet was not a money-transmitting business, it had no obligations to prevent money laundering under the (Bank Securrency Act).”.
Support from Senators
Also included in the file is a letter from bipartisan pair Senators Cynthia Lummis and Ron Wyden to Attorney General Merrick Garland arguing, “Subjecting developers of non-custodial crypto asset software to potential criminal liability as unregistered money transmitters contravenes the well-established interpretation of (FinCEN’s guidance) and will only serve to stifle innovation and shake confidence in the DOJ’s respect for the rule of law.”
The letter states Hill is expected to make his first appearance before the U.S. District Court for the Southern District of New York on July 9 or 10.
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