Title: The Future of Bitcoin's Samourai Wallet: A Closer Look at the Ongoing Legal Battle
Cryptocurrency Blender Service Owners Potentially Await Case Dismissal as Department of Justice Contemplates Abandoning Prosecution
In Brief- The developers of the shuttered Bitcoin mixing app, Samourai Wallet, hope for a dismissal following the change in crypto-friendly leadership.- Prosecutors and the defense team have requested a 16-day extension as they weigh the possibility of dropping the case.
Let's break this down, shall we?
SCENEThe founders of the notorious Bitcoin mixing app, Samourai Wallet, are holding their breath, hoping the new crypto-friendly administration will let their case slide.
A recent letter from their legal team and prosecutors indicates that they've asked for a 16-day extension, pondering whether to drop the case.
The extension comes after the defendants sent a plea to the U.S. attorney for the Southern District of New York in the previous month, requesting the case be scrapped following the dismantling of the crypto-dedicated enforcement team at the DOJ.
Under Trump's Reign, Crypto Operations Breathe EasierThe DOJ, under the new administration, swore off pursuing criminal charges against crypto exchanges, mixing services, or cold wallet holders—unless they're involved in embezzlement, scams, rug pulls, or hacks.
Samourai Wallet, a wallet service offering Bitcoin mixing capabilities, received a nasty shutdown from the feds last year. Police apprehended Keonne Rodriguez and William Lonergan Hill in April 2024, seized the website, and charged them with conspiracy to commit money laundering and operating an unlicensed money transmission business.
Although this case has created ripples, it noticeably pales in comparison to the uproar surrounding Tornado Cash, an Ethereum mixing provider that the U.S. authorities squashed in 2022.
The Tornado Cash SagaFeds banned American use of Tornado Cash, accusing it of being used to launder ill-gotten gains. They further alleged that co-founders Roman Storm and Roman Semenov laundered over $1 billion in criminal proceeds.
The case caused quite a stir, with privacy-conscious politicians and crypto giants like Coinbase rallying against what they termed an assault on civil liberties. The United States Treasury ultimately removed Tornado Cash from the list of parties sanctioned by the Office of Foreign Assets Control a month ago. Moreover, a federal court has now permanently barred the body from reimposing sanctions on it.
Trump's Impact on Crypto EnforcementSince Trump assumed office in January, the DOJ and SEC have shown leniency towards crypto firms, dropping numerous high-profile cases. Trump's campaign platform welcomed the industry, garnering support from crypto and Silicon Valley heavyweights.
We reached out to Rodriguez and Hill's legal team for comment but haven't heard back yet. Keep your fingers crossed for the folks behind Samourai Wallet!
- The defendants, Rodriguez and Hill, are holding their breath with the new crypto-friendly administration, hoping the case against them will be dropped.
- Prosecutors and the defense team have requested a 16-day extension to weigh the possibility of discontinuing the case.
- The extension comes as the defendants sent a plea to the U.S. attorney for the Southern District of New York, requesting the case to be scrapped after the dismantling of the crypto-dedicated enforcement team at the DOJ.
- Bitcoin mixing app, Samourai Wallet, is one of the crypto operations that have breathed easier under Trump's reign, as the DOJ swore off pursuing criminal charges against crypto exchanges, mixing services, or cold wallet holders.
- Samourai Wallet, which offers Bitcoin mixing capabilities, faced a nasty shutdown from the feds last year, resulting in the arrest of Keonne Rodriguez and William Lonergan Hill.
- The legal team of Rodriguez and Hill is currently using a Samourai wallet, hoping for a similar debrief as the Tornado Cash case, where the United States Treasury removed Tornado Cash from the list of parties sanctioned by the Office of Foreign Assets Control.
- The defense team is hoping for a dismissal following the change in crypto-friendly leadership, just like other crypto firms who have seen leniency from the DOJ and SEC under Trump.
