The case against Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill took a significant turn today in the Southern District of New York. The two developers were arrested in late April and charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.
During the first hearing, only Rodriguez and his attorney were present in the courtroom, as Hill is currently in Portugal and has not responded to an extradition request from the US government. The prosecution stated that it is ready for the trial, whether both defendants are present or not, and is nearly set to engage in discovery, sharing the evidence it plans to use for the trial.
One interesting development in the case is a letter from US Senators Cynthia Lummis and Ron Wyden to Attorney General Merrick Garland, expressing concerns about the DOJ’s interpretation of the statute in the context of non-custodial crypto software services. The senators argue that non-custodial crypto service providers cannot be classified as money transmitter businesses.
Rodriguez’s attorney plans to file a motion to dismiss the indictment based on this letter. The judge announced that Rodriguez will remain under house arrest, and the next hearing for the case is scheduled for September 4, 2024.
For those interested in supporting the legal defense fund for the Samourai developers, donations can be made through a fundraiser set up by the Bitcoin Policy Institute (BPI). The case has garnered significant attention in the crypto community, and the outcome could have implications for the regulation of non-custodial crypto services. Stay tuned for updates on this developing story.
