The co-founders of Samourai Wallet claim that federal prosecutors concealed FinCEN guidance that would have cleared them of the charges.
The legal team representing Samourai Wallet’s co-founders has accused federal prosecutors of deliberately withholding information that could have exonerated the developers from the charges they are facing.
In a letter dated May 5, addressed to a federal court in Manhattan, attorneys for Keonne Rodriguez and William Hill revealed that prosecutors had been informed by the Financial Crimes Enforcement Network (FinCEN) — a bureau of the U.S. Treasury Department — that Samourai Wallet did not require a license to operate. This communication reportedly took place months before the official charges were filed.
The attorneys stated:
“Shockingly, six months later, the same prosecutors criminally charged Keonne Rodriguez and William Hill with operating just such a business without a FinCEN license.”
According to the filing, this information was withheld for nearly a year, only surfacing on April 1, 2025, despite the legal obligation to disclose it earlier.
Rodriguez and Hill were charged in February 2024 with conspiracy to operate an unlicensed money-transmitting business and conspiracy to commit money laundering. The charges were made public in April, when both were arrested. The accusations center around Samourai’s mixing service, which prosecutors claim facilitated over $100 million in money laundering through illegal transactions totaling more than $2 billion.
Prosecutors argued the service enabled transactions tied to darknet markets and various scams. However, the defense emphasized that FinCEN had informed prosecutors that Samourai Wallet, as it did not hold custody of bitcoin, did not meet the definition of a “money services business” under existing guidelines. This clarification reportedly came during a conversation between prosecutors and FinCEN officials Kevin O’Connor and Lorena Valente, where it was determined that Samourai didn’t control users’ private keys or custody funds, and therefore likely did not qualify as a money transmitter.
Nevertheless, prosecutors proceeded with the charges, contending that Samourai exercised functional control over funds — a position not addressed in FinCEN’s official guidance and considered weak even by FinCEN officials.
Currently, Samourai’s defense team has requested a hearing to investigate the delay in disclosing this information and determine an appropriate remedy. If the government opposes dismissing the case, the defense plans to renew its motion, arguing that charges were brought without fair notice and that the company acted in good faith based on the guidance available at the time.
The defense also cited a recent memorandum from Deputy Attorney General Todd Blanche, dated April 7, 2025, stating that the Department of Justice will no longer prosecute crypto mixers like Samourai for regulatory violations. This new directive prompted the defense to request dismissal of the case, insisting that under FinCEN guidelines, Samourai was not a money transmitter and could not be prosecuted for lacking a license.
