The defense team for the co-founder of Samourai Wallet is requesting the court to dismiss the charges, citing FinCEN's guidelines and the Justice Department's new policy.
The legal case surrounding Samourai Wallet is entering a new phase as the defense team for co-founders Keonne Rodriguez and William Hill has filed a motion to dismiss the criminal charges. The motion submitted on May 5 revealed critical information that could completely change the course of the case.
The conflict between FinCEN's assessment and the prosecutor's allegations
According to a recently filed motion, the defense attorney revealed that the Financial Crimes Enforcement Network (FinCEN) sent an internal notice to the prosecutor as early as August 2023, assessing that Samourai Wallet may not fall under the current money transfer service provider regulations.
Notably, despite this assessment from the regulatory agency, the Southern District of New York (SDNY) Prosecutor's Office proceeded to prosecute Rodriguez and Hill in April 2024 on charges of conspiracy to commit money laundering and operating an unlicensed money transfer service. The prosecution alleges that their privacy-focused bitcoin wallet facilitated illegal transactions worth $2 billion over nine years.
The defense argues that the prosecution violated the disclosure obligation under the Brady precedent (Brady v. Maryland) by delaying the sharing of important assessments from FinCEN for over a year. It was only on April 1, 2025, after a specific request from the defense, that the information was provided. Internal emails revealed that FinCEN officials emphasized that Samourai's non-custodial model – where users retain full control of their private keys – 'very likely' means that this service would not be considered a money services business (MSB).
The situation became more complicated after the Department of Justice (DOJ) issued a memorandum on April 7, 2025, signed by Deputy Attorney General Todd Blanche, instructing prosecutors to refrain from imposing the current regulatory framework on crypto projects while formal regulations are still being developed. Specifically, this policy prohibits the prosecution of mixing services like Samourai based on licensing violations or user behavior – which is central to the current indictment.
The defense argues that the delay in providing information from FinCEN has severely impacted the client's rights, including bail decisions that led to Rodriguez being placed under house arrest and restricting both defendants' access to legal funds.
Rodriguez and Hill have long asserted that they comply with FinCEN's guidelines from 2014 and 2019 – which exempt non-custodial crypto tools from MSB licensing requirements. Rodriguez's public statements during 2021-2022 show that he frequently cited these guidelines to justify Samourai's operations.
A hearing is scheduled to clarify the timeline for disclosing evidence under the Brady rule and what remedies may be applied. If the case is dismissed, this could set an important precedent, limiting the ability to prosecute crypto developers based on current financial laws while the regulatory framework for the sector is still being finalized.
